Protocol Caps

Notional uses protocol-level limits on top of user margin checks. These limits control how much debt, exchange margin, and open interest (OI) the shared balance sheet can support. The values below are the current mainnet configured limits.

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Collateral Caps

Max LTV is the share of an asset’s collateral value that can count toward margin and borrow capacity. The borrow cap is the maximum amount of borrowed USDC that can be supported by that asset. Deposit caps are denominated in native token units.

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Leverage and OI Caps

The gross OI cap is expressed in USD notional. A market without an explicit cap starts with a smaller USD 100,000 gross OI limit.

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Protocol Utilization Caps

The debt utilization cap is 80%. Total user debt may not exceed 80% of protocol USDC assets. The reserved margin cap is 85%. Exchange margin reserved by open positions and open orders may not exceed 85% of protocol USDC assets. Debt utilization is: $$d_{\text{pool}} = \frac{D_{\text{pool}}}{A_{\text{USDC}}^{\text{prot}}}$$ where $D_{\text{pool}}$ is total user USDC debt and $A_{\text{USDC}}^{\text{prot}}$ is total protocol USDC assets. Reserved margin utilization is: $$U_{\text{margin}} = \frac{M_{\text{reserved}}}{A_{\text{USDC}}^{\text{prot}}}$$ where $M_{\text{reserved}}$ is the exchange margin reserved for open positions and open orders, and $A_{\text{USDC}}^{\text{prot}}$ is total protocol USDC assets.