Huma
  • ABOUT HUMA
    • What is Huma?
    • Why Huma?
    • Key Resources
  • ANNOUNCEMENTS
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    • Huma (2.0)
      • Overview
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      • Modes: Classic vs Maxi
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        • Extending Lockup
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        • $PST
        • Data Room
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    • Huma Institutional
      • Introduction
        • Overview
        • Pool Types
        • Calendar
        • Admin Roles
      • Tranches
        • P&L Policies
        • Deposit
        • Redemption
      • First Loss Covers
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  • ECOSYSTEM RESOURCES
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      • Huma (2.0)
      • Huma Institutional
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Tranches

Tranche support is vital for institutions participating in the Huma protocol. As mentioned before, there are two types of tranches: senior and junior. The senior tranche is generally seen as a lower-risk investment. It offers a modest yield but carries less risk. If there's a default, senior tranche lenders receive payment first. The junior tranche, on the other hand, assumes a higher risk and earns a higher yield when things go smoothly. If there's a default, junior tranche lenders are paid after those in the senior tranche.

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Last updated 29 days ago