Isolated markets
Every market has separate vaults, lender shares, borrower debt, oracle rules, fees, reserve, and bad debt. A market cannot spend another market’s tokens.
LLTV
LLTV is the debt level at which your position can be liquidated. It is immutable after market creation.
Utilization
Utilization is the percentage of supplied USDC currently borrowed. The variable borrow rate rises more sharply above its target.
Oracle failure
A stale or invalid oracle blocks borrowing, collateral withdrawal, and liquidation. It never blocks repayment or adding collateral.
First-loss reserve
USDC deposited into a market reserve absorbs finalized bad debt before regular lenders. It reduces risk but does not guarantee repayment.
Classification
Every market begins Unverified. Community, Established, Curated, and Restricted labels affect discovery only and always include exact reasons.
Token-2022
The protocol supports only explicitly allowed extensions. Transfer-fee, transfer-hook, permanent-delegate, confidential-transfer, and pausable behavior is rejected in the MVP.