To prevent sudden depletion of the junior tranche and to maintain adequate coverage for the senior tranche, the protocol enforces protective safeguards. If the senior coverage ratio falls below predefined thresholds, the protocol may temporarily halt senior minting and junior redemptions, or allow junior redemptions only after a lockup period, depending on the underlying market. Additional details are provided in the respective market docs.
Coverage is a self-balancing mechanism - the thinner it is, the higher the yield for junior tranche, attracting more liquidity.