> For the complete documentation index, see [llms.txt](https://docs.prl.one/buttonwood/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.prl.one/buttonwood/learn/tranche/deposit-flow.md). # Deposit Flow ![Diagram of a user depositing into an AMPL bond in return for tranche tokens](/files/xn6rv5JPIRDow9wvDjlE) In order to tranche their collateral, a user can deposit it into a TrancheBond. The bond goes through its configured *tranche ratios*, minting tranche tokens proportional to the ratio and the amount of collateral deposited. For example: * *Tranche ratios*: 20/30/50 * *Collateral*: AMPL * User deposits 1000 AMPL * User receives (1000 \* 0.2) = 200 AMPL-A Tranche * User receives (1000 \* 0.3) = 300 AMPL-B Tranche * User receives (1000 \* 0.5) = 500 AMPL-Z Tranche ![](/files/xwuv3dj46aBk5EKyNola) After this interaction, the user's position value is still equivalent to holding their original AMPL. However, they now have separate assets which represent different parts of AMPL's risk: * The A-tranche represents the safest 20% of AMPL's value * The B-tranche represents the middle 30% of AMPL's value * The Z-tranche represents the top 50% of AMPL's value *and* all of its future upside The user can now sell some of these tranches to change their risk profile. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.prl.one/buttonwood/learn/tranche/deposit-flow.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.