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RE: LeoThread 2025-10-27 13-01

in LeoFinance3 days ago

Part 9/10:

It's crucial for investors and participants to understand that the market price of tokenized Tesla fluctuates based on supply, demand, and trading activity. The liquidation support provides a floor but does not cap the market price, which can trade above or below the $4.50 benchmark in the example.

The system is designed so that demand and supply forces, coupled with liquidity management, determine the actual trading price. The liquidation preference functions as a safeguard, ensuring that investors are protected from catastrophic losses beyond a predetermined limit.


Conclusion