# KEI Stablecoin KEI Stablecoin is an over-collateralized debt token issued by the Keiko Protocol. KEI can be minted by depositing collateral into a vault. **Hard Price Ceiling** The KEI Protocol sets a natural price ceiling for KEI at $1.10, based on its policy of a 90% maximum Loan-to-Value (LTV) ratio for some assets. \ \ Should the KEI exchange rate rise above this mark, borrowers have the opportunity to immediately benefit by taking out the maximum loan possible against their collateral and then selling their KEI for over $1.10 in the marketplace. \ \ For instance, if 1 KEI is valued at $1.20, an individual could secure $2200 worth of their chosen collateral, borrow 2000 KEI, and sell it for $2400. This action results in a guaranteed arbitrage profit of $200, even if the collateral is eventually liquidated. **Hard Price Floor** The ability to redeem KEI for collateral enforces a hard price floor, below which arbitrage opportunities become profitable. These mechanisms are referred to as "hard peg mechanisms" since they rely on direct intervention processes.\ \ You can learn more about the Keiko's redemption mechanism on the Redemption Page. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.keikofinance.com/protocol-overview/kei-stablecoin.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.