Health Index Definition

What is the Health Index?

The Health Index (HI) measures the protocol’s solvency position. It reflects the protocol’s capacity to fully meet its financial obligations to users at any given time..

HI is defined by two core components:

• Protocol Liabilities: represent the total obligations the protocol must fulfill. They include the value of users’ deposited assets (principal) and reward debt, which represents accrued rewards that have been accounted for by the protocol but remain unclaimed by users.

• Protocol Assets: represent the total economic value owned and managed by the protocol. They include all assets held across the Staking Vault, Treasury, IL Reserve Fund, Distributor, and Strategy Vault, including both idle liquidity and capital deployed in active yield strategies.

Protocol Assets Breakdown

Prime Staking

Account	Address
PrimeBERA	0x3af6…e783
PrimeETH	0xccee…0660
PrimeBTC	0xd57c…5837
PrimeUSD	0xf4e2…d3e5

IL Reserve Fund

Account	Address
Impermanent Loss Safety	0x05cb…ae3c

Treasury

Account	Address
Yield Storage	0xf8ac…2dc6

Distributor

Account	Address
PrimeBERA	0xac1f…f655
PrimeETH	0x96a9…38f6
PrimeBTC	0x0186…82a8
PrimeUSD	0xde76…4672

Prime Strategy

Account	Address
Prime Strategy Idle	0x8ba7…48a7
Strategy 1	0xcfc9…dec1
Strategy 2	0xee98…91c0
Strategy 3	0x9a8e…b302

Health Index Formula

The Health Index (HI) quantifies the ratio between the protocol’s total on-chain assets and its aggregate liabilities to users.

$$HI = \frac{\text{Total value of Assets}}{\text{Total value of Liabilities}}$$

The Health Index operates within four solvency bands that reflect the protocol’s financial condition:

Prime Vaults maintains systemic health through a layered set of defense mechanisms spanning yield allocation, reserve buffers, and protocol-level interventions