Deposit & Withdrawal Limits
Limits that protect users from potential bad actors on the platform
Deposit caps and withdrawal limits are ceilings imposed on the maximum amount that can be deposited into or withdrawn from each vault.
These limits are imposed with user safety in mind, and are adjustable via Kamino's multi-sig.
Deposit caps are an overall ceiling to the amount that can be deposited into any vault. Each vault has a deposit cap by default, and the initial cap is determined during the vault onboarding process.
Deposit caps on new vaults are typically conservative, as it is best practice to first allow for a strategy to run with a limited amount of funds, after which caps can be raised via the multisig.
Even though Kamino's strategies are finely tuned by the quantitative model before a vault goes live, a conservative approach should take precedence.
If you want the deposit cap on a certain vault to be adjusted, please contact the Kamino contributors on Discord.
Withdrawal caps are limits on how much $ value can be withdrawn from a vault in a certain time period (epoch).
This prevents price manipulation exploits, where a malicious depositor aims to deposit, manipulate the price of a token, then withdraw when the price has been manipulated. Though Kamino's oracle risk engine does provide protection against such an exploit, the deposit caps are an additional security measure.
When a deposit cap is reached, users have to wait until the epoch passes. Once a new epoch begins, the caps are reset, and users can withdraw once again.