Risk Configuration Dictionary
Flexibility is at the core of Gearbox’s design. Credit Accounts support a wide range of on-chain assets as collateral, which requires a risk framework capable of handling diverse asset properties. Gearbox’s risk controls are built to operate under uncertainty and adapt to any market conditions.
Gearbox is a platform for the permissionless creation and curation of lending markets. To participate safely, both Curators and Users must understand the risk-control allowlist: Curators need to know the capabilities it grants, while Users should understand the trust assumptions they accept when engaging in lending activity.
Curator Roles
The Curator utilizes two primary roles to modify market parameters:
Admin Can modify all configurable parameters, subject to a minimum 24-hour timelock.
Emergency Admin Can update a limited set of risk parameters instantly (without timelock) to mitigate immediate threats.
Pool-Level Rules
These parameters define the global constraints for the Liquidity Pool. If a user disagrees with these terms, they must select a different pool.
Definitions
Total debt limit: Maximum amount of underlying assets that can be borrowed across the entire pool.
Collateral limit: Maximum amount of debt that can be backed by a specific collateral token (Quota Limit).
Main Price Feed: Primary price source used for calculating account value and triggering liquidations.
Reserve Price Feed: Secondary price source used to run safety checks on operations; can block Credit Account actions to protect LPs.
Increase Rate: One-time fee charged whenever exposure to a collateral increases.
Collateral-specific rate: Additional interest rate (APR) charged for borrowing against a specific collateral.
IRM: The Utilization-based Interest Rate Model contract.
Loss Policy: The logic executed when a liquidation results in bad debt.
Emergency liquidators whitelist: Addresses authorized to liquidate accounts when the Credit Manager is paused (Default: Permissionless).
Loss liquidators whitelist: Addresses authorized to execute liquidations that result in bad debt (Default: Permissionless).
Permissions Matrix
Total debt limit
✅
⚠️ Reduce to zero-only
Collateral limit
✅
⚠️ Reduce to zero-only
Main Price Feed
✅
⚠️ Limited choice
Loss Policy
✅
⚠️ Can turn off
Loss liquidators whitelist
✅
⚠️ Can turn off
Emergency liquidators whitelist
✅
⚠️ Can turn off
Reserve Price Feed
✅
❌
Increase Rate
✅
❌
Collateral-specific rate
✅
❌
IRM
✅
❌
Credit Manager-Level Rules
These parameters define the strategy for a specific Credit Manager. If a user disagrees with these terms, they can choose another Credit Manager within the same pool.
Definitions
Total debt limit: Maximum aggregate debt of all Credit Accounts created from this Credit Manager.
MinDebt: Minimum required debt to open a Credit Account.
MaxDebt: Maximum permitted debt per Credit Account.
Liquidation Premium: Percentage of collateral value paid to the liquidator as an incentive.
Liquidation Fee: Percentage of collateral value paid to the Protocol (Curator & DAO).
Max Enabled Tokens: Maximum number of collateral tokens a single account can enable simultaneously.
Interest Fee: Percentage of borrowing interest captured as revenue (split between Curator & DAO).
Collateral's LT: The Liquidation Threshold (Loan-to-Value ratio).
Collateral's forbidden status: Controls whether a token is allowed or forbidden.
List of allowed adapters: Restricts which external contracts (e.g., Uniswap, Curve) a Credit Account can interact with.
Expiration Policy: Date after which the strategy winds down. After this date, all Credit Accounts become liquidatable regardless of Health Factor.
Permissions Matrix
Total debt limit
✅
⚠️ Reduce to zero-only
List of allowed adapters
✅
⚠️ Forbid-only
Collaterals list
✅
⚠️ Forbid-only
Liquidation Premium
✅
❌
Liquidation Fee
✅
❌
Collaterals' LT
✅
❌
Expiration Policy
✅
❌
MinDebt
❌
❌
MaxDebt
❌
❌
Max Enabled Tokens
❌
❌
Interest Fee
❌
❌
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Flexibility is at the core of Gearbox’s design. Credit Accounts support a wide range of on-chain assets as collateral, which requires a risk framework capable of handling diverse asset properties.
Gearbox’s risk controls are built to operate under uncertainty and adapt to any market conditions.
Curator has 2 main roles to modify markets' parameters:
Admin
Can modify all configurable parameters, subject to a minimum 24-hour timelock.
Emergency Admin
Can update a limited set of risk parameters without a timelock in emergency situations.
All the rules below will have a specification based on which access those roles have.
Pool-level rules
If a user disagrees with these terms, they need to select another pool.
Total debt limit: maximum that can be borrowed across the entire pool
Collateral limit: maximum that can be borrowed against each token
Main Price Feed: price source for calculating account value and triggering liquidations
Reserve Price Feed: runs safety checks on operations and can block Credit Account actions to protect LPs
Increase Rate: one-time fee whenever exposure to a collateral increases
Collateral-specific rate: extra interest for borrowing against a given collateral
IRM: utilization-based interest rate model
Loss Policy: additional liquidation logic for cases that create bad debt
Emergency liquidators whitelist: when Credit Manager is paused, liquidations are performed in "Emergency" mode which allows to restrict access to liquidations. By default they are permissionless
Loss liquidators whitelist: when a liquidation creates bad debt, it's performed in "Loss" mode mode which allows to restrict access to liquidations. By default they are permissionless
Total debt limit
✅
⚠️ Reduce to zero-only
Collateral limit
✅
⚠️ Reduce to zero-only
Main Price Feed
✅
⚠️ Limited choice
Loss Policy
✅
⚠️ Can turn off
Loss liquidators whitelist
✅
⚠️ Can turn off
Emergency liquidators whitelist
✅
⚠️ Can turn off
Reserve Price Feed
✅
❌
Increase Rate
✅
❌
Collateral-specific rate
✅
❌
IRM
✅
❌
Credit Manager-level rules
If a user disagrees with these terms, they can choose another Credit Manager within the same pool.
Total debt limit: maximum aggregate debt of all Credit Accounts created from this Credit Manager
MinDebt: minimum required debt for a Credit Account
MaxDebt: maximum permitted debt for a Credit Account
Liquidation Premium: portion of collateral value paid to the liquidator during liquidation
Liquidation Fee: portion of collateral value paid to the curator and Gearbox DAO during liquidation
Max Enabled Tokens: number of different collateral tokens that can count toward account value
Interest Fee: extra rate on top of the IRM and collateral-specific rate, split between the curator and DAO
Collateral's LT (loan to value)
Collateral's forbidden status
List of allowed adapters: restricts which external contracts a Credit Account can use
Expiration Policy: curator may set an expiration; after the cutoff date, all Credit Accounts become liquidatable regardless of Health Factor with penalties set by the expired liquidation fee and premium parameters.
Total debt limit
✅
⚠️ Reduce to zero-only
List of allowed adapters
✅
⚠️ Forbid-only
Collaterals list
✅
⚠️ Forbid-only
Liquidation Premium
✅
❌
Liquidation Fee
✅
❌
Collaterals' LT
✅
❌
Expiration Policy
✅
❌
MinDebt
❌
❌
MaxDebt
❌
❌
Max Enabled Tokens
❌
❌
Interest Fee
❌
❌
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