> ## Documentation Index
> Fetch the complete documentation index at: https://docs.spiralstake.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Oracle & exit liquidity

> The two facts that most determine a leveraged position's risk.

## Oracle type

Every market prices collateral through an oracle. The **type** decides how a depeg affects you:

<CardGroup cols={2}>
  <Card title="nav" icon="shield-check">
    Prices by redemption / net asset value. A DEX depeg **won't** liquidate you — the position tracks the collateral's underlying value.
  </Card>

  <Card title="market" icon="triangle-exclamation">
    Prices from a market feed. A depeg **can** liquidate you even if the collateral still redeems 1:1. Weigh against `ltvPct.liquidation` headroom.
  </Card>
</CardGroup>

For a correlated stable loop with a `nav` oracle, liquidation risk largely collapses to a single question: *does the collateral hold its peg?* That's the same risk a passive lender in the same market already carries.

## Exit liquidity

`exitLiquidity.slippagePct` is measured **per USD size**:

* A number is the slippage to unwind at that size (negative = price improvement).
* `null` = no route at that size.
* `maxLeverage` is derived from this — it's a **liquidity** bound, not a safety bound.

<Warning>
  High headline APY on a `market`-oracle strategy with thin exit liquidity is a trap: the yield is real on paper but unreachable at size, and the position can liquidate on a temporary depeg. Always read oracle type and exit liquidity together.
</Warning>