# Tiered Structure With ELYFI version 2, a tiered structure is introduced, featuring senior and equity tranches that provide users with more options to suit their risk preferences. Senior tranche liquidity providers receive a fixed percentage of returns, while equity tranche liquidity providers take on a portion of the senior tranche's risk in exchange for a potentially higher return. This structure allows liquidity providers to choose the level of risk they are comfortable with, and it promotes a balanced approach to risk management. ELYFI Protocol uses Senior Tokens (SNT) and Equity Tokens (EQT) to represent investments in senior and equity tranches, respectively. Liquidity providers can buy and sell Senior Tokens before their expiration date through the waiting pool. There are no penalties for early repayment by borrowers. The tranche ratio of 7:3 allows for greater flexibility in managing the investment pool. The initial rate is set at 100%, and the minimum ratio is 15%, which is half of the equity tranche. The pool manager can vote to suspend or restart the pool based on certain indicators, such as the ratio of the equity pool principal to the senior pool principal. A delinquency is defined as any amount past its due date. A pool suspension occurs when delinquencies exceed 15%. During suspension, further lending is restricted, but loan repayments, pending applications, and transactions are allowed. A 7-day grace period follows a pool suspension, during which the pool may be reactivated if arrears are filled and specific criteria are met. If the arrears are not filled during the grace period, the pool is closed, and those in good standing will be paid when the due date arrives. --- # 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://docs-v2.elyfi.world/features/tiered-structure.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.