> For the complete documentation index, see [llms.txt](https://docs.snowbl.capital/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.snowbl.capital/how-it-works/overcollateralization.md). # Collateralization Snowbl vaults hold more assets in value than what is reported to depositors. This surplus acts as a buffer that absorbs yield volatility and short-term valuation fluctuations.

Collateralization is continuously updated on the detailed vault view.

As a result, the share price of each vault remains stable and is not directly impacted by temporary swings in underlying yield or asset valuations. Only realized, confirmed gains are reflected in the share price over time. This overcollateralization model ensures that depositors benefit from consistent, smoothed returns rather than being exposed to the noise of day-to-day market movements. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.snowbl.capital/how-it-works/overcollateralization.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.