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What does 1.5× exposure mean?

A beginner explanation of gross stock exposure, junior capital and senior financing.

·2 min read
Senior claim to Vault assets to Junior residualSenior claimpriority, not a guaranteeVault assetsone asset, one issuerJunior residualabsorbs losses first

On a single-stock vault’s 1.5× target, one unit of junior capital is paired with half a unit of senior financing to create one and a half units of gross stock exposure. The index and gold vaults run at 2.0×, pairing each unit of junior capital with a full unit of senior financing. The exact result includes entry fees, rounding and capacity gates.

Leverage changes after price movement, financing accrual and exits. It is not a fixed return multiple. Use the calculator and inspect the vault balance sheet before opening a review.