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Dawn is a legacy deployment. Its contracts remain operational, but Dawn is no longer under active development. Users should understand the accounting behavior below before interacting with a Dawn market.

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Junior Tranche recovery shortfall

When a Senior Tranche drawdown is absorbed by Junior Tranche capital, Dawn records the amount as Junior Tranche impermanent loss. While the market remains in its fixed-term recovery state, subsequent gains are first applied toward restoring Junior Tranche value before normal yield distribution resumes. In certain cases, Dawn can record the recovery as complete and clear the remaining impermanent-loss balance before Junior Tranche value has fully returned to its pre-observation level. This can leave Junior Tranche holders with a shortfall relative to the value they held before the Observation Period. The limitation concerns incomplete recovery rather than the loss of the entire recovery amount. As a result, an underlying asset returning to its pre-drawdown value does not necessarily return Junior Tranche value to exactly its pre-observation level. Users should evaluate Dawn positions based on the deployed contracts and current onchain state, and should not assume that behavior described for Royco Day also applies to Dawn.