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Fees & Risk Parameters

⚙️ Fees & Risk Parameters

Moosh enforces fees and risk parameters through transparent, protocol-defined rules rather than discretionary control.

These mechanisms are designed 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
  • fully visible on-chain

Exact fee levels depend on individual market configurations and may change during the testnet phase.

Core Risk Parameters

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

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.

Together, these parameters define the risk boundaries within which users can safely operate.
Exceeding these boundaries may result in partial or full liquidation of collateral.

During the testnet phase, 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.