Minting residual claims at a depressed net-asset value transfers recovery option value from existing holders to new capital. A flat entry fee ignores that transfer, so xRWA prices it: 0.10% at or below 2.00x structural leverage, and 1.00% above it.
The premium above the 0.10% base is credited to vault cash, so existing junior holders receive it rather than a protocol fee bucket. New entrants are still priced fairly at the current NAV; they simply pay for the convexity they consume.
Why a fee and not a block? New junior capital into a stressed vault reduces risk. Blocking it would protect incumbents by keeping the vault fragile, which is worse. Pricing the transfer keeps recapitalization possible while compensating incumbents.
Both thresholds are research hypotheses, not calibrated values. This is a local model; no guarantee, live market or audit is implied. Inspect the rule in the Risk Lab and the entry fee row on any Boost order card.