> For the complete documentation index, see [llms.txt](https://learn.hex1.club/hex-one-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://learn.hex1.club/hex-one-protocol/tokenomics.md).

# Tokenomics

- [Vault](https://learn.hex1.club/hex-one-protocol/tokenomics/vault.md): A vault represents a pool of tokens locked in a contract.
- [Collateral Ratio](https://learn.hex1.club/hex-one-protocol/tokenomics/collateral-ratio.md): Hex One offers 100% collateral ratio, which means you can mint every dollar-value you put in (minus the fee). Collateral Ratio = Health Ratio
- [Liquidation Ratio](https://learn.hex1.club/hex-one-protocol/tokenomics/liquidation-ratio.md): Liquidations take place if the health ratio drops below 250%, or if no repayment is made after the stake matures.
- [Liquidation Process](https://learn.hex1.club/hex-one-protocol/tokenomics/liquidation-process.md): To avoid de-pegging and extreme price fluctuations, the Hex One protocol uses a collateral debt auction system that allows depositors to bid on stakes that can be transformed into Hex tokens.
- [Impermanent Loss Protection](https://learn.hex1.club/hex-one-protocol/tokenomics/impermanent-loss-protection.md): Impermanent Loss (IL) happens when one side of the liquidity pool is removed, leaving liquidity providers holding only one token pair, commonly the illiquid one.
- [Price Feed](https://learn.hex1.club/hex-one-protocol/tokenomics/lp.md): HEX/DAI from ETH Price Feed
- [Pumpamentals](https://learn.hex1.club/hex-one-protocol/tokenomics/pumpamentals.md): $HEX1 is a protocol to improve on HEX, to make it more scarce and more expensive.