Cruize v2

Below Floor

For users entering below the floor, the protocol enforces the creation of hedged derivatives with 2 additional price floors at 25% and 50% below the original floor, i.e. at 60% and 35% of the peak market price. For example, anyone entering at a price below the original floor will receive a derivative with the second floor which lies 25% below the first one. The algorithm will repeat the whole strategy as explained in the previous section but for the new floors depending upon the entry price.
While the derivative with the first floor is meant to generate the most liquidity, the additional floors provide a way for users to hedge their assets even below the original floor price. As an example, if the actual floor price is $1,000 and a user enters at $800, they will be protected against any price drop below $750, which is 25% below the original floor. The use of fixed values for the price floors reduces the fragmentation of liquidity and also makes the derivatives fungible.
Note that the third floor is actually the kill switch, so users won't be able to enter below that price.