Daily Caps

Daily caps are the amount of an asset that can leave the system over a 24-hour period - alternatively expressed as Net Outflow Caps.

Daily Caps protect the protocol and users in two ways:

  1. It prevents an attacker from draining any asset from the system, thus limiting the damage should an oracle exploit occur

  2. It means that outsized debt positions can only be built up over time, allowing the protocol to track it's impact on system health

Daily caps for each asset are determined by the risk framework outlined throughout this document, and are indicated in the UI on the market page of each asset.

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