Risk infrastructure built to keep you out of liquidation.
Vanna is composable margin infrastructure for DeFi. Traders open isolated margin accounts to hold under-collateralized positions; liquidity providers supply the pools those positions borrow from. Every account runs under one continuous health check — so risk is isolated, monitored and managed, not amputated.
Liquidation is a failure mode, not a feature.
Most margin systems protect lenders by force-closing a borrower the moment a position dips — the user is amputated to save the pool. Vanna treats that as the last resort it's built to avoid.
Risk is isolated to each account and watched continuously. The direction of the protocol is a management layer — trading agents via Vanna MCPs (coming) — that hedges and de-risks a position long before it ever approaches the floor, so capital stays working instead of being wiped.
- Managed, not amputatedRisk is actively steered — the goal is to keep positions alive, not close them out.
- Isolated by designEvery account is its own contract, so the blast radius of any single position stays bounded to that account.
- Liquidity to marketsLending pools supply the credit that under-collateralized positions draw on — a composable margin layer.
Two sides, one credit layer.
Liquidity providers supply the pools; traders borrow against isolated collateral and deploy it across markets. Interest flows back to the suppliers — both sides stay economically connected.
Supply liquidity
Liquidity providers deposit into a lending pool and receive vTokens. Traders borrow from the pool and pay interest — which accrues back to suppliers passively, with no positions to manage.
Open a margin account
A trader opens a margin account — their own isolated smart contract — and deposits collateral into it. The account borrows against that collateral to take under-collateralized, leveraged exposure.
Deploy across markets
Borrowed capital stays inside the account and is deployed composably — spot swaps, liquidity pools and yield strategies — all held under a single unified position, not scattered across wallets.
Stay under one health check
The risk engine evaluates the account's health before every borrow, withdrawal or settlement, pricing all collateral and debt together. Repay to close, and the interest paid returns to the pool.
What keeps you out of liquidation.
Vanna's architecture is built so risk can be contained and steered per account rather than dumped on the whole system. These are the primitives that make that possible.
The gatekeeper
The risk engine is the protocol's gatekeeper — it's called before every borrow, withdrawal or settlement, computes the account's health, and approves the action only if the account stays sound.
Isolated accounts
Every margin account is a separately deployed contract with its own collateral, borrow list and positions. No two accounts share state, so a single account's trouble can't propagate to anyone else.
Isolated lending pools
Liquidity sits in separate per-asset pools, each accruing interest through its own rate model. Pool isolation keeps one market's stress from becoming cross-asset contagion.
Continuous health
Position health — collateral value against debt value — is monitored continuously and priced from a live oracle, so the account's true state is always known, not sampled after the fact.
Composable by construction
Accounts deploy into external DeFi through a controlled execute path, and the engine tracks those external positions — so composed strategies stay inside one health check instead of escaping it.
Upgradeable address book
Contracts resolve each other through an on-chain registry at runtime, so risk logic can evolve — including the agentic layer below — without forcing users to migrate accounts.
Trading agents that manage risk for you.
The management layer of the thesis: autonomous agents that watch a position and act on it — via Vanna MCPs, coming.
Under-collateralized risk, managed autonomously.
Vanna MCPs will expose margin accounts to trading agents as tools they can reason over and act on. Instead of a keeper waiting to close a failing position, an agent works to keep it healthy.
- Monitor — track health, exposure and market conditions across the account in real time.
- Hedge — open offsetting positions to neutralize risk as conditions move against the account.
- De-risk — rebalance or trim exposure before health approaches the floor — not after.
- Manage, don't amputate — the objective is a surviving, steered position, not a forced close-out.
Independently reviewed.
Risk infrastructure only earns trust if it's examined from the outside. Vanna's economics and its V1 contracts have both been put under independent review.
Economic risk assessment
An independent analysis of the protocol's economic design and risk parameters — the incentives, collateral and solvency assumptions behind the margin system.
Download PDFV1 security audit — Soroban
An independent security audit of the V1 smart contracts, deployed on Soroban. Covers the account, pool and risk-engine contracts that hold and check user funds.
Download PDFBoth documents are published in full. Read the reports directly for methodology and findings, and the technical documentation for how each contract behaves on-chain.
Questions, answered.
What is Vanna?
Vanna is composable risk and margin infrastructure for DeFi. Liquidity providers supply lending pools and earn yield from borrower interest; traders open isolated margin accounts, borrow against collateral, and deploy that capital across markets under one unified health check. It's a credit and margin layer other applications can build on — not a standalone app.
How does Vanna keep you out of liquidation?
The foundation is isolation and continuous monitoring: each account is its own contract, and the risk engine checks its health before every action, so risk is contained and always visible rather than shared across the system. On top of that, Vanna's direction is a management layer — trading agents (via Vanna MCPs, coming) that hedge and de-risk a position before it ever nears the floor. The aim is to steer risk instead of force-closing users; managed, not amputated.
What are Vanna MCPs?
Vanna MCPs are an interface that will expose margin accounts to trading agents as tools they can read and act on — monitoring health and exposure, then hedging or de-risking autonomously to keep under-collateralized positions healthy. They're in development and not yet live.
Is it live?
The V1 protocol — lending pools, isolated margin accounts and the risk engine — is built and deployed on Soroban, and has been through an independent security audit and an independent economic risk assessment (both linked above). The agentic management layer, Vanna MCPs, is still coming. For the current mechanics in detail, read the documentation.
Build on margin infrastructure that keeps positions alive.
Walk through how Vanna isolates risk, supplies liquidity to markets, and — with agents via Vanna MCPs — manages under-collateralized positions instead of liquidating them.