# Overcollateralized vault

{% hint style="info" %}
**TLDR:** T-shares represent a HEX payout. **$HEX1** represents several T-SHARES. Therefore, **$HEX1** = increasing future HEX payout. 
{% endhint %}

## Embedded Yield

Hex One is the first stablecoin protocol with embedded yield. This can be translated into the **$HEX1** vault collateral automatically increasing in numerary value: T-SHARES represent an ever-increasing number of HEX tokens. 

## Overcollateralized Vault

According to our [calculations](/hex-one-protocol/basics/how-usdhex1-peg-works.md), the vault will contain the following collateralization ratios due to the native HEX yield: 

<table><thead><tr><th>Collateralization</th><th>15 Years (MAX)</th><th data-hidden>10 Years (MIN)</th></tr></thead><tbody><tr><td>Base</td><td>508%</td><td>361%</td></tr><tr><td>HEX/DAI &#x3C; 50%</td><td>254% </td><td>180%</td></tr><tr><td>HEX/DAI > 50%</td><td>761%</td><td>541%</td></tr></tbody></table>

This means that if HEX drops 50%, the vault continues to be 254% overcollateralized. In other words, HEX would need an 80% drop for the vault to be below 100% collateralization. This is assuming all hex stakes have claimed the maximum amount of HEX1 stablecoin, per stake created.&#x20;

Oppositely, if HEX increases 50% the vault automatically increases the collateralization to 761% until depositors mint HEX1 to satisfy the delta between the price change.&#x20;


---

# Agent Instructions: 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://learn.hex1.club/hex-one-protocol/basics/overcollateralized-vault.md?ask=<question>
```

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.