Limit engine
The limit engine reviews a curator's proposed strategy for concentration, stressed losses and exit capacity. Its review defaults are separate from limits enforced by the vault program. A departure can require a recorded reason without being forbidden by the contract.
The defaults below describe rule set limits-2026-10-06.1. A saved strategy can override a review value with a reason. Check the strategy's actual values and acknowledged departures when reviewing a vault.
Terms used by the review
- Book: the strategy's total value, including idle cash. Allocation percentages below use this total unless stated otherwise.
- Line: one proposed investment allocation.
- Originator: the organisation behind the underlying exposure, looking through the token or venue. Different lines can share one originator.
- Macro driver: an economic dependency, such as the same source of borrower demand, that can affect several lines together.
- Screening tier: a source-registry eligibility classification. These A/B tiers are separate from Discover's A–E opportunity grades.
Eligibility and concentration
| Review rule | Default | Meaning |
|---|---|---|
| Eligible sources | Screening tier A or B | Flags and source facts affect eligibility. A tier alone is not a guarantee. |
| Access and token restrictions | Review each flagged source | An asset allowlist, permanent delegate, transfer hook or unresolved legal note needs attention. This is separate from Akashi's allowlist of vault creators. |
| Venue capacity | At least 5% deposit-cap headroom and open to new allocations | A proposed new allocation needs room in the external venue. |
| One line | 8% standard cap with a separate 10% upper-bound review | These are two review thresholds, not two contract-enforced deposit limits. |
| Smallest line | 3% | Avoid allocations too small to be useful under the default review. |
| Single-borrower line | 4% | Limits one line whose repayment depends on one borrower. |
| One originator | 25% combined | Combine related exposures across lines. Idle cash is excluded from originator exposure. |
| One macro driver | 35% combined | Combine lines relying on the same economic driver. |
| One venue program | 35% combined | Limits shared program exposure. Spot-token lines are exempt from this particular rule. |
Stress budget
For each line, multiply its portfolio weight by its assumed stress loss. Add the contributions to estimate the share of the book lost in the review scenario.
Stress contribution = line weight × assumed loss on that line
Book stress loss = sum of the line contributionsIllustrative example: a 10% allocation with a 50% stress loss contributes 5% of the book. A separate 20% allocation with a 25% stress loss adds another 5%. Together they contribute 10%, before the other lines are considered. These are scenario assumptions, not loss probabilities.
The allowed stress budget normally comes from a curve using weighted lending utilisation, bounded between 20% and 40%. When spot tokens exceed half the allocated book, or lending utilisation cannot be calculated, the default fixed budget is 25%.
This review budget is not the vault's live Junior coverage ratio or its premium curve. A strategy passing the review can still lose more than the scenario assumes.
Exit capacity and cash
| Review rule | Default | Meaning |
|---|---|---|
| Exit within one day | At least 25% of the book | Estimated sellable or withdrawable amount at the reviewed size and cost ceiling. |
| Exit within one week | At least 50% | Includes cooldowns and queues in the route assessment. |
| Sale cost ceiling | 0.6% for lots up to 1 million USDC | Above 1 million, it compares the available 1-million quote with a 2% ceiling. This is an approximation, not a quote for the full larger amount. |
| Idle USDC | At least 5% | Cash held outside investment positions for withdrawals. |
For a lot above 1 million USDC, the model reuses the available sale-cost estimate at 1 million. It does not directly measure the full larger exit. This limited quote ladder can overstate exit capacity for a large position, so inspect route depth separately.
These are strategy-review assumptions, not a promise that your own request will be paid within one day or one week. External queues, unavailable routes and contract funding conditions still matter.
Triggers for review
Venue utilisation of 95% triggers review. 98% flags new deposits under the review rules. Less than 5% deposit-cap headroom also requires attention. Changes to a held reserve's loan-to-value ratio, liquidation threshold, cap, oracle or authorities can require another review.
The framework does not certify regulatory compliance. For contract controls, read coverage and limits. For the meaning of the underlying exposures, read allocations and adapters.