> For the complete documentation index, see [llms.txt](https://ark-defai.gitbook.io/ark/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ark-defai.gitbook.io/ark/4.-layer-1-or-economic-laws-of-ark-defai/4.2-five-regulation-modules/4.2.2-rbs-module-or-range-bound-stability/iii.-price-range-logic-design.md).

# III. Price Range Logic Design

| **Zone**      | **Calculation Formula**                | **Function Description**                            |
| ------------- | -------------------------------------- | --------------------------------------------------- |
| Cushion Upper | Cushion Upper = Target Price × (1 + c) | Activate bond selling (control overheating)         |
| Cushion Lower | Cushion Lower = Target Price × (1 – c) | Activate bond buying (prevent price collapse)       |
| Wall Upper    | Wall Upper = Target Price × (1 + w)    | Protocol directly sells ARK to intervene            |
| Wall Lower    | Wall Lower = Target Price × (1 – w)    | Protocol directly buys ARK to provide price support |

#### **Example Application**

If the target price is $10:

Cushion range = $9.25 \~ $10.75 (c = 7.5%)

Wall range = $8.75 \~ $11.25 (w = 12.5%)

If market price drops to $9 → Activate bond purchases, reclaim supply, stabilize price

If market price falls below $8.75 → System automatically uses treasury assets to purchase ARK

If market price exceeds $11 → System automatically sells ARK to suppress speculative bubbles