Isolation Mode
Last updated
Last updated
Isolated assets are more volatile assets that have stricter risk management parameters than non-isolated assets. Users can only enable one isolated asset as collateral at any given time. Isolated assets have a set debt ceiling* and can be only used to borrow select assets that have been configured to be borrowable in isolation mode.
*Debt Ceiling for an isolated asset is the maximum amount in USD that can be borrowed against the collateral.
An isolated asset can be supplied like any other asset, however the default behaviour while supplying an isolated asset will depend on the below conditions
Enabled
- if Isolated Asset is the first asset supplied by the user OR - no other supplied asset is enabled as collateral by the user
Disabled
if any other asset is currently enabled as collateral
Borrowers using an isolated asset as collateral can only use that particular asset as collateral and can only borrow assets for which the get-borroweable-isolated
read-only call from returns true
.
Users can turn off isolation mode by disabling the isolated asset as collateral. This can be done only if the user has no outstanding debt.