> ## Documentation Index
> Fetch the complete documentation index at: https://docs.iris.credit/llms.txt
> Use this file to discover all available pages before exploring further.

# Pricing Considerations

> What a solver typically needs to think about when returning a quote.

Pricing in IRIS is mostly about deciding which floating-rate risk you are willing to warehouse, for how long, and behind how much backing.

## Inputs that matter most

* current venue funding cost,
* how that funding cost could move over the requested tenor,
* how much backing the quote will consume,
* how concentrated your book already is in that debt asset,
* how narrow the allowed venue set is,
* whether you would still be comfortable holding the position if borrower timing becomes inconvenient.

## A practical pricing discipline

Most desks need some version of the same stack:

* start with expected floating carry,
* add a duration premium,
* add a capital charge for committed backing,
* add extra margin when venue choice is narrow or inventory is scarce,
* walk away entirely when the position cannot be actively managed.

## The real test

A good IRIS quote is not just a number that wins the request. It is a number the solver can still defend if:

* funding moves against the venue,
* the borrower waits longer than hoped to close,
* extra backing is needed before the position can be migrated or resolved.

For the transport layer around those quotes, see [RFQ Overview](/rfq/overview).