INKBRACECOLLATERAL RESILIENCE LAB

01 / UNDERSTAND THE DOWNSIDE

STRESS IT.
BRACE IT.

How much shock can
your collateral absorb?

Build an example portfolio. Hit it with a price shock. Move the reserve. See what changes.Run the stress lab ↘

THE STRESS LAB

LOCAL / ILLUSTRATIVE DATA
Adjust inputs ↘View results ↗
01 BUILD THE MIX

Relative weights; normalized automatically.

Example collateral $100,000Fixed liability $35,000
02 APPLY THE SHOCK
0%−60%

Shared hit × sensitivities: equity 1, crypto 1.35, RWA 0.65.

03 MAKE ROOM
0%60%

Reallocates the same $100k budget. More reserve means less risky exposure.

STRESSED COVERAGE RATIOABOVE MODEL THRESHOLD
1.63×

Model threshold 1.00×

CAPACITY ABOVE LIABILITY$22,000

The example retains room above the model threshold.

Illustrative collateral capacity before and after the shockINITIAL CAPACITY / $75KLIABILITY / $35KSTRESSED / $57,000Capacity = retained collateral × 75% illustrative threshold

RESERVE COMPARISON

Same mix, budget and shock. Only the reserve changes.

ScenarioReserveRetained valueHeadroom
Baseline20%$76,000$22,000
Current20%$76,000$22,000

Move the reserve to compare the difference.

02 / UNDERSTAND THE RECOVERY

TWO WAYS
TO ADD ROOM.

PATH A / EXTERNAL COLLATERAL$0

Add example collateral from outside the portfolio. Liability stays fixed.

max(0, target × liability ÷ 0.75 − retained collateral)
PATH B / EXTERNAL REPAYMENT$0

Repay liability using external funds. Existing collateral stays fixed.

max(0, liability − capacity ÷ target)

Independent alternatives, not a combined strategy. These calculations omit costs and execution constraints. A target ratio is an input, not a safety guarantee.

SAVED RUNS

Stored in this browser. Load a run to continue experimenting.

No saved runs. Make one worth comparing.

03 / OPEN THE MODEL

ASSUMPTIONS.
IN PLAIN SIGHT.

What does this model calculate?

Fixed initial collateral: $100,000. Fixed liability: $35,000. The reserve reallocates this budget; it does not add new capital. Risky weights are normalized across the three example baskets.

Retained collateral = reserve + sum of each risky allocation × (1 − asset shock). Capacity = retained collateral × 0.75. Headroom = capacity − $35,000. Coverage ratio = capacity ÷ $35,000.

A ratio below 1 crosses this illustrative threshold. Actual protocols use different parameters. The model does not predict liquidation, return or market behavior.

How do shared shocks and the reserve work?

Shared shock uses fixed sensitivities: equity 1.00, crypto 1.35, RWA 0.65. Each loss is capped at 100%. This is a deterministic co-movement scenario, not a measured correlation or a probabilistic forecast. Single-asset mode shocks only your chosen basket.

The hypothetical reserve holds nominal value and receives the same 75% threshold. Depegs, oracle failures, liquidity, fees, interest, custody risk and liquidation mechanics are excluded. Real assets and protocols may behave very differently.

Why is this useful? What is BRACE for?

The free lab makes the tradeoff between risky exposure and a reserve visible. It runs locally with no token or wallet required.

BRACE is a planned application token for advanced scenario packs and shared team workspaces. These token-gated services are not implemented. No token is issued here. Tax and fee design is undecided. No yield, price support or ownership rights are promised.

Model version & source context

Inkbrace educational model v1.0. The 75% threshold, sample baskets, liability and sensitivities are chosen assumptions, not live protocol parameters.

For general context on collateral ratios, see Aave's health factor explanation ↗. Inkbrace is independent and does not integrate with or represent Aave.