Ondo forces the fixed and variable tranches to each comprise 50% of a Vault's assets. This way, the risk profile of each tranche is knowable in advance. The fixed tranche is initially a 50% loan-to-value position and the junior tranche is initially a 2x levered position. Additionally, with a 50 / 50 constraint on the size of the tranches, liquidity providers to the fixed tranche can contribute one of the two assets comprising an AMM's liquidity pool and liquidity providers to the variable tranche can contribute the other asset.