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

# The line and the cushion

> How far a stock can fall before anything happens.

The line is the price on the card. Cushion is how far the live price sits above it.

If the live price reaches the line, some of that stock is sold to cover the loan.

<Frame>
  <img className="block dark:hidden" src="https://mintcdn.com/mystockline/pS48XIpI7ezPciHd/assets/diagrams/using/the-line-and-the-cushion-light.svg?fit=max&auto=format&n=pS48XIpI7ezPciHd&q=85&s=9ceaff9e6a5c36d73244ea6bd99f863a" alt="Live price sits on the left, the line sits on the right, and cushion is the gap between them." width="1200" height="460" data-path="assets/diagrams/using/the-line-and-the-cushion-light.svg" />

  <img className="hidden dark:block" src="https://mintcdn.com/mystockline/pS48XIpI7ezPciHd/assets/diagrams/using/the-line-and-the-cushion-dark.svg?fit=max&auto=format&n=pS48XIpI7ezPciHd&q=85&s=14f12124491237ee29c72cc1bead7792" alt="Live price sits on the left, the line sits on the right, and cushion is the gap between them." width="1200" height="460" data-path="assets/diagrams/using/the-line-and-the-cushion-dark.svg" />
</Frame>

<Info>
  A crypto protocol often shows a health factor. Stockline shows a price per stock, because that is the number a person already watches.
</Info>

Onchain, health is `sum(collateral × price × LT) / debt`. One means the line. Below one the account can be sold in LIVE or DARK. Max borrow is `sum(collateral × price × LTV)`. LTV and LT come from the book's tier. NVIDIA LTV is [45%](/resources/parameters). NVIDIA LT is [60%](/resources/parameters). SPY LTV is [70%](/resources/parameters). SPY LT is [77%](/resources/parameters).

The worked example on the loan card uses NVIDIA at [\$182.15](/resources/parameters) with a line at [\$104.17](/resources/parameters) and a [43%](/resources/parameters) cushion. Those demo numbers live in PARAMETERS.json and are regenerated when book params change.

Repay or add stock moves the line down. Take stock back or borrow more moves it up. Auto-protect, off by default, repays from Cash if cushion drops under 10%.

Weekend prices are Friday's close minus [200 bps](/resources/parameters). The line is still computed. Borrowing cannot add risk until LIVE.

Related: [Borrow](/using/borrow), [If your stock falls](/using/if-your-stock-falls), [Liquidations](/concepts/liquidations), [Books and tiers](/concepts/books-and-tiers).