How it works: Drag = Net Senior Claims (Debt + Preferred − Cash) ÷ (Total BTC × BTC Price).
Fiat-denominated claims (USD, JPY, EUR, GBP) compress as BTC rises — the numerator is fixed in fiat while BTC price rises.
BTC-denominated claims have
static drag regardless of price.
Collateral-backed claims carry liquidation triggers below a maintenance ratio.
Read the CEBE framework →