Glass Floor

A Glass Floor refers to a situation where a person is protected from falling below a certain level or experiencing significant losses, often through a safety net or guarantee. In finance, it’s a contractual agreement that sets a minimum interest rate or return, ensuring the investor doesn’t earn less than that amount, regardless of market performance. It’s like having a safety buffer that limits downside risk while still allowing for potential gains. This mechanism provides reassurance and stability, balancing risk and reward in uncertain environments.