Risk parameters
Every reserve carries its own risk configuration, all of it on-chain and visible on the reserve's page in the app.
Collateral parameters
| Parameter | What it does |
|---|---|
| Max LTV | The most you can borrow against this asset, as a share of its value. |
| Liquidation threshold | The LTV at which positions backed by this asset become liquidatable. |
| Liquidation penalty | The discount a liquidator receives on seized collateral. |
A typical stablecoin might run 80% / 85% / 5%; volatile assets run lower LTVs and higher penalties.
Reserve parameters
| Parameter | What it does |
|---|---|
| Reserve factor | Share of borrow interest kept by the treasury instead of paid to suppliers. |
| Supply cap | Hard ceiling on total supply of the reserve. Deposits fail beyond it. |
| Borrow cap | Hard ceiling on total borrows. New borrows fail beyond it. |
| Optimal utilization | The kink in the rate curve. |
Caps limit how much exposure the protocol can accumulate to any single asset. The Markets page warns when a reserve approaches its caps, because transactions near a full cap can start failing.
Status flags
Reserves can additionally be frozen (no new supplies or borrows, exits still work), paused (nothing moves), not usable as collateral, or restricted to siloed borrowing (the asset can only be borrowed on its own). The Markets list badges all of these.