# Raising the Floor The Goldilocks AMM incorporates an automated floor raising mechanism that increases the floor price of LOCKS by moving a portion of the PSL to the FSL whenever certain conditions are met. Specifically, the AMM contains a \`target ratio’ variable T such that when the ratio PSL/FSL hits T, the AMM transfers a portion of the PSL to the FSL, thereby increasing the floor price permanently. The portion of the PSL that is transferred to the FSL on floor raises increases as a function of the PSL/FSL ratio -- it is very small when market price is close to floor and increases as the market price goes further above the floor. After the floor raises this way, the PSL/FSL ratio will decrease back below T and a new target threshold is set at 1.02\*T. If the PSL/FSL ratio is stuck below T for a period of time, the protocol will gradually decrease T so that it becomes easier to reach it, thereby ensuring that the floor never stops rising. Specifically, the AMM decreases T by n% each day, where n is the number of days since the last time it hit T. --- # 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://goldilocks-1.gitbook.io/goldidocs/locks/raising-the-floor.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.