Editing Openai/6973721c-28b0-8007-a991-09211709d274 (section)

===== Default “founder-safe” settings (if you want an immediate starting point) =====

Without your specifics, a conservative institutional heuristic is:
* target liquidation probability ≤ 0.1% over 7d
* assume stressed borrow APR = 2× current
* assume stress slippage 5–10% on PT
* then set LTV 10–20 points below LLTV/LT for looping (bigger buffer if oracle is spot-like)

This aligns with how PT-as-collateral risk is discussed: liquidation execution + oracle behavior dominate outcomes, not the “it converges at maturity” story. Aave<ref>{{cite web|title=Aave|url=https://governance.aave.com/t/llamarisk-insights-aaves-pt-token-exposure-risk-outlook/22312|publisher=governance.aave.com|access-date=2026-01-23}}</ref>

If you reply with the exact PT + market, I’ll compute:
* recommended LTV band (aggressive/base/conservative)
* max loops / target leverage
* break-even borrow APR vs PT implied yield
* liquidation distance under 1d/7d shocks