CPIT and Preventing Manipulation

Preserving Market Integrity

• Trades can move asset prices, creating manipulation risk.

• CPIT = Cumulative Price Impact Tolerance — a safeguard vs. manipulation.

• CPIT is expressed as a percentage of a vault’s NAV/AUM.

• CPIT caps the total allowable price impact across all trades.

• By capping impact, CPIT makes pump-and-dump / rugging economically unviable.

• Upfront costs to inflate TVL typically exceed potential manipulation gains.

• CPIT is set per vault at creation and is immutable.

• Applied per instrument (spot, lending, perpetuals, etc.).

• Individual CPIT settings converge toward conservative tolerances market-wide.

• Repeated high impact with losses is a red flag—depositors should consider withdrawing.