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Fees & Risk Parameters

Moosh enforces fees and risk parameters through transparent, protocol-defined rules rather than discretionary control. These mechanisms exist to align incentives, manage risk, and preserve system integrity under varying market conditions.

Protocol Fees

Fees may be applied as part of standard lending and liquidation processes. These fees are enforced automatically by smart contracts and are visible on-chain. Exact fee levels depend on market configuration and may change during the testnet phase.

Core Risk Parameters

Risk within each market is governed by a set of explicit parameters, including:

  • Loan-to-Value (LTV): the maximum borrowing capacity relative to supplied collateral
  • Liquidation Threshold: the point at which a position becomes eligible for liquidation
  • Liquidation Penalty: the cost incurred when a position is liquidated

These parameters define the boundaries within which users can safely operate. Exceeding them may result in partial or full liquidation of collateral.

During the testnet, risk parameters may be adjusted to observe system behavior and validate enforcement under different conditions. Users are encouraged to focus on understanding risk boundaries rather than maximizing leverage. Testnet parameters do not represent final mainnet settings.