Risk Management

In order to reduce the risk, protocol has some built in parameters and Admin functions that can be used for mitigation.

Pool Locking

Every interaction with every pool can be locked at any time by Admins if there is a need for that.

Locking can be done by method and by the pool, so for example Deposit can be locked at one pool and Borrow on another.

Pool locking requires multisign of three Admins in order to be set.

Deposit Limit

Every pool has the deposit_limit parameter that can be used to limit the deposits for that pool.

When the deposit limit is reached, new deposits are not possible.

If the value of the deposit_limit is 0, then there is no limit.

Deposit limit requires multisign of three Admins in order to be set.

Pool Reserve

Represents the percentage of assets that is blocked (reserved) on deposit in order to act as a buffer when the pool utilization is high so there is always sufficient available liquidity. It is used in the available liquidity calculation for the pool.

Max Borrow Percent

Represents the maximum percentage of the pool that one user can borrow. It serves to protect the pool from being dried out by one user. It is used on the borrow and withdraw actions.