> For the complete documentation index, see [llms.txt](https://docs.mezz.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mezz.finance/tranches/interactive-blocks.md).

# Junior Tranche

**JLT** is the first loss layer. It absorbs losses before all other tranches and receives the highest risk premium as compensation for this exposure.

\- **Capacity**: \~10% of total TVL.

\- **Unstaking**: Initially set at 2 full epochs. During the unstaking period, yield accrues at 50% of the JLT rate. Full JLT loss exposure is maintained until the exit completes.


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