> For the complete documentation index, see [llms.txt](https://docs.brix.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.brix.money/itry/price-stability.md).

# Price stability

iTRY maintains it's price peg through arbitrage between the primary market and secondary markets.

The primary market allows eligible, whitelisted participants to mint and redeem iTRY at a fixed rate of 1:1 with Turkish Lira. When the price of iTRY in external markets deviates from this value, arbitrage opportunities appear. These opportunities create economic incentives for market participants to buy or sell iTRY in ways that naturally push the price back toward its peg.

## Arbitrage

Arbitrage refers to a trade that profits from price differences for the same asset across different markets. When an asset is cheaper in one venue and more expensive in another, traders can buy the asset where it is undervalued and sell it where it is overvalued. As they do so, supply and demand shift in each market and the prices converge.

Because iTRY can be minted and redeemed on demand by eligible participants, its primary-market price serves as a hard reference point. Secondary-market prices may move temporarily due to liquidity, sentiment, or order flow, but arbitrage closes these gaps.

## Examples

### iTRY trades below 1 TRY on the secondary market

When iTRY is cheaper in secondary markets, arbitrageurs can buy it at a discount and redeem it on the primary market for its full 1 TRY value.

Example:

1. iTRY trades at 0.95 TRY on a DEX.
2. A whitelisted primary market participant buys iTRY on the DEX, driving the market price up.
3. The participant redeems iTRY on the primary market at 1.00 TRY.
4. The 0.05 TRY spread becomes the participant's profit.

As whitelisted arbitrageurs repeat this trade, demand for the underpriced iTRY increases, lifting its secondary-market price back toward the peg.

### iTRY trades above 1 TRY on the secondary market

When iTRY is more expensive in secondary markets, arbitrageurs can mint new iTRY on the primary market at 1 TRY and sell it on the secondary market for more.

Example:

1. iTRY trades at 1.05 TRY on a DEX.
2. A whitelisted primary market participant mints new iTRY on the primary market at 1.00 TRY.
3. The participant sells the newly minted iTRY on the DEX at 1.05 TRY, driving the market price down.
4. The 0.05 TRY spread becomes the participant's profit.

As whitelisted arbitrageurs repeat this trade, the increased supply reduces the secondary-market price back toward the peg.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## 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.brix.money/itry/price-stability.md?ask=<question>
```

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.