The position on Lighter is one netted position, but the engine tracks every deposit as a tranche with its own entry price. A tranche takes profit when the underlying moves trigger ÷ leverage from its entry: which is exactly +trigger on that tranche's own collateral. New fees never dilute an old tranche's progress. The trigger is the coin's take-profit, chosen at launch from +10% up to 20× the leverage, so a target never needs more than a 20% move of the asset: +40% at 2x, +200% at 10x, the +500% ceiling from 25x up. The usual picks:
Concretely: a 5x coin at +20% banks each tranche on a 4% move of the underlying; a 2x coin at its +40% ceiling needs 20%.
Targets that come down with time. A target far away can leave a deposit in profit but never banked. So a tranche that has not matured after 7 days starts lowering its own target, in a straight line, down to +10% by day 30. A tranche in profit therefore banks eventually; one underwater waits as before, and its worst case stays the liquidation of its own collateral.
Managed coins (soon). At launch the creator will choose whether the engine is fixed forever or managed. A managed coin's creator can retune leverage and take-profit later: every change is announced on-chain by the router and takes effect 12 hours after, and the coin carries a Managed badge everywhere. Market and side never change. Independently, the router's owner can override any coin's leverage or take-profit immediately, the escape hatch for a venue that lowers a cap or delists a market; every override is a public event.
Banking a tranche. When a tranche matures, the keeper closes exactly that tranche's size: reduce-only, at market, fill-verified: the position is re-read after the order and profit is credited only for what actually closed. Freed collateral re-enters as a fresh tranche at the current mark, so banked capital keeps compounding.
Ring-fencing. Realized profit is excluded from what the keeper can redeploy. Profit destined for burns can never be re-risked on the position it came from. It can only leave toward the buyback.
The venue is the truth. The tranche book only ever converges toward what Lighter reports: position gone means the book zeroes; smaller than the book means tranches rescale pro-rata; larger means the excess becomes a synthetic tranche at the current entry.