Daily Caps

Daily caps are the amount of an asset that can leave the system over a 24-hour period. There are two caps for each asset reserve:

• New Debt Limit: Net amount of an asset that can be borrowed

• Daily New Withdraw Cap: Net amount of a collateral that can leave the system

Daily Caps protect both the protocol and users by:

• Preventing any single asset from being rapidly drained—limiting potential losses in the event of an oracle exploit.

• Forcing large debt positions to accumulate gradually, so their impact on system health can be monitored over time.