Vault Tiers and Fees

To normalize borrowing demand, JPEG'd uses a tiered vault structure (e.g. Tier-A, Tier-B, Tier-C) where each tier has different debt ceilings and annual interest rates.

Do all NFT collections have the same tier vault structure?

No. The amount of available vaults, their interest rates, and their debt ceilings are all decided via governance according to the borrowing demand for each respective NFT collection.

An example of the vault tier structure is provided below:

Borrow Asset
Tier-A Interest Rate
Tier-B Interest Rate


How does my position get placed into a certain vault tier?

Depending on the available debt in each vault, borrowing positions will get automatically placed in the best vault (i.e. lowest interest). If a user’s borrowed amount exceeds the available pETH/PUSd debt (debt ceiling) in a given vault tier, the position will automatically be migrated to the next tier vault.
Can I migrate a position to another vault tier?
Yes, it’s possible to migrate a position to another vault tier as long as the available debt is equal to or more than your current position’s debt. This can be done by using the migrate function.
Who receives the interest rates charged on loans?
All earnings from interest charged is directed to the treasury multi-sig.