Qilin V2 mitigate the insolvency effects with a liquidity pool debt solution that allows debt issuance for liquidity pools to pay for profiting positions when the value of the pool goes beyond a certain Liquidity Provider Safety Factor (LPSF). This is analogous to the circuit breaker mechanism in the stock market. When the liquidity pool borrows debt to pay for profiting positions, a debt market issues Debt Token to traders through the pool as proof for future payments . The pool repays the debt to pay for traders’ profit with future liquidity pool tokens.