# Risk Parameters per Asset

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<summary>ℹ  7/28/25 | Note: Supply Caps on Asset Markets (Expand to Read)</summary>

Bonzo Finance has crossed $70 million Total Value Locked (TVL) — an all-time high of TVL in $hbar denominated value, as well — powered by institutional inflows and a growing Hedera retail user base. **As the protocol continues to mature and evolve, larger amounts of liquidity, relative to the size of Hedera's ecosystem, calls for additional risk controls.** In coordination with risk partners, the **Bonzo Finance protocol has implemented supply caps across asset markets** for more adequate protection of lenders, the protocol, and supported tokens.&#x20;

Supply and borrow caps in Bonzo Finance are configured as fixed token amounts (versus total value). At a high-level, supply caps are set on a per-asset basis and determined based on asset and liquidity attributes, including, but not limited to, their relative available liquidity across Hedera DeFi (DEXs, etc.).&#x20;

With the introduction of supply caps, certain asset markets may have a cap configured lower than the amount currently supplied; this is often common in lending protocols across web3, as changing market dynamics shift risks, especially during volatile seasons.&#x20;

**If an asset's supply cap is configured below the amount currently supplied, funds can remain supplied and used as collateral (or “supply only”), until withdrawn, without issue.** If an asset's supply has reached or is above its cap, users will not be able to supply this asset to a pool (or re-supply after withdrawing, if already in the pool) until the pool's total supply drops below the cap.

Safety for users, the protocol, and broader ecosystem is priority #1 to ensure long-term success — while certain limitations can feel restricting, they serve as critical safeguards which support the current state of Hedera's ecosystem as it continues on its trajectory towards more liquidity, users, and protocols.

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Each asset in the Bonzo Finance protocol has configurable risk parameters, which influences how they are supplied and borrowed. The calibration of the parameters will be conservative as the protocol launches, to ensure safety, and become more aggressive as the Bonzo Finance ecosystem matures with educated users, greater liquidity, and a thriving liquidation ecosystem.

The table below offers a summary of the latest risk parameters per asset:

<table><thead><tr><th width="99.80810546875">Asset</th><th width="99.993896484375">LTV</th><th width="129.8697509765625">Liquidation Threshold</th><th width="166.6597900390625">Liquidation Bonus</th><th width="149.32470703125">Reserve Factor</th><th width="126.8885498046875">Supply Cap</th><th width="139.47998046875">Borrow Cap</th></tr></thead><tbody><tr><td>$HBAR</td><td>62.72%</td><td>67.98%</td><td>1.98%</td><td>11.68%</td><td>-</td><td>57,034,268</td></tr><tr><td>$HBARX</td><td>62.98%</td><td>68.28%</td><td>1.18%</td><td>10.14%</td><td>-</td><td>9,641,854</td></tr><tr><td>$USDC</td><td>80.45%</td><td>83.50%</td><td>7.40%</td><td>13.50%</td><td>-</td><td>5,500,000</td></tr><tr><td>$wETH</td><td>70%</td><td>75%</td><td>7%</td><td>20%</td><td>225</td><td>112</td></tr><tr><td>$SAUCE</td><td>40.00%</td><td>68.04%</td><td>3.95%</td><td>14.60%</td><td>18,138,944</td><td>4,534,736</td></tr><tr><td>$XSAUCE</td><td>40.00%</td><td>67.59%</td><td>3.95%</td><td>10.94%</td><td>14,936,519</td><td>3,734,129</td></tr><tr><td>$BONZO</td><td>40.00%</td><td>59.00%</td><td>6.66%</td><td>17.25%</td><td>14,116,318</td><td>3,529,079</td></tr><tr><td>$KARATE</td><td>20.00%</td><td>65.00%</td><td>3.46%</td><td>19.60%</td><td>385,208,012</td><td>77,041,602</td></tr><tr><td>$DOVU</td><td>20.00%</td><td>59.00%</td><td>6.66%</td><td>17.25%</td><td>19,379,844</td><td>3,875,968</td></tr><tr><td>$PACK</td><td>10.00%</td><td>57.00%</td><td>6.91%</td><td>12.97%</td><td>480,307</td><td>0</td></tr><tr><td>$HST</td><td>10.00%</td><td>52.00%</td><td>6.17%</td><td>15.22%</td><td>1,077,934</td><td>0</td></tr><tr><td>$STEAM</td><td>10.00%</td><td>57.00%</td><td>8.14%</td><td>13.88%</td><td>1,226,843</td><td>0</td></tr><tr><td>$GRELF</td><td>20.00%</td><td>59.00%</td><td>6.66%</td><td>17.25%</td><td>107,642</td><td>21,528</td></tr><tr><td>$KBL</td><td>10.00%</td><td>57.00%</td><td>6.66%</td><td>17.25%</td><td>1,161,440</td><td>0</td></tr></tbody></table>

The table above results from the asset risk assessment relating to security, governance and the markets. Tokens with high risk exposure to single counter-parties cannot be used as collateral.

## Risk Parameter Changes

When market conditions change, risks change; Bonzo Finance is continuously monitoring the assets integrated into the protocol, which sometimes requires quickly adapting the risk parameters. The table below tacks parameter changes over time.

<table><thead><tr><th width="141">Date</th><th width="113">Asset</th><th width="194">Parameter Changed</th><th width="140.96875">From</th><th width="154.984375">To</th></tr></thead><tbody><tr><td><strong>10/28/2025</strong></td><td>wETH</td><td>Loan-to-Value (LTV)<br>Liquidation Threshold<br>Liquidation Bonus<br>Reserve Factor<br>Supply Cap<br>Borrow Cap</td><td>New Asset</td><td>70%<br>75%<br>7%<br>20%<br>220<br>112</td></tr><tr><td><strong>8/13/2025</strong></td><td>SAUCE<br>XSAUCE<br>BONZO<br>KARATE<br>GRELF<br>DOVU<br>PACK<br>STEAM<br>HST<br>KBL</td><td>Supply Caps<br><br><a href="../change-memos/august-2025/supply-borrow-cap-updates-ecosystem-assets">Supply / Borrow Cap Updates - Ecosystem Assets</a></td><td>10,000,000<br>35,000,000<br>30,000,000<br>2,000,000,000<br>949,834<br>102,000,000<br>10,120,275<br>19,781,362<br>26,725,453<br>45,450,838</td><td>18,138,944<br>14,936,519<br>14,116,318<br>385,208,012<br>107,642<br>19,379,844<br>480,307<br>1,226,843<br>1,077,934<br>1,161,440</td></tr><tr><td><strong>8/13/2025</strong></td><td>SAUCE<br>XSAUCE<br>BONZO<br>KARATE<br>GRELF<br>DOVU<br>PACK<br>STEAM<br>HST<br>KBL</td><td>Borrow Caps<br><br><a href="../change-memos/august-2025/supply-borrow-cap-updates-ecosystem-assets">Supply / Borrow Cap Updates - Ecosystem Assets</a></td><td>3,000,000<br>10,750,000<br>8,400,000<br>803,014,392<br>450,000<br>230,000,000<br>16,053,200<br>11,372,200<br>5,537,875<br>16,000,000</td><td>4,534,736<br>3,734,129<br>3,529,079<br>77,041,602<br>21,528<br>3,875,968<br>0<br>0<br>0<br>0</td></tr><tr><td><strong>8/13/2025</strong></td><td>SAUCE<br>XSAUCE<br>BONZO<br>KARATE<br>GRELF<br>DOVU<br>PACK<br>STEAM<br>HST<br>KBL</td><td>LTV<br><br><a href="../change-memos/august-2025/risk-parameter-ltv-updates-ecosystem-assets">Risk Parameter LTV Updates - Ecosystem Assets</a></td><td>30.00%<br>30.00%<br>30.00%<br>25.00%<br>20.00%<br>20.00%<br>25.00%<br>20.00%<br>20.00%<br>25.00%</td><td>40.00%<br>40.00%<br>40.00%<br>20.00%<br>"<br>"<br>10.00%<br>10.00%<br>10.00%<br>10.00%</td></tr><tr><td><strong>8/8/2025</strong></td><td>$SAUCE<br>$XSAUCE<br>$BONZO<br>$STEAM<br>$PACK<br>$DOVU<br>$HST<br>$GRELF<br>$KBL</td><td>LTV</td><td>62.41%<br>61.83%<br>50.00%<br>50.00%<br>50.00%<br>50.00%<br>45.00%<br>50.00%<br>50.00%</td><td>30%<br>30%<br>30%<br>20%<br>25%<br>20%<br>20%<br>20%<br>25%</td></tr><tr><td><strong>8/8/2025</strong></td><td>$SAUCE<br>$XSAUCE<br>$HST<br>$GRELF<br>$KBL</td><td>Borrow Cap</td><td>4,376,629<br>18,755,218<br>12,537,875<br>678,611<br>17,335,529</td><td>3,000,000<br>10,750,000<br>5,537,875.00<br>450,000<br>16,000,000</td></tr><tr><td><strong>8/8/2025</strong></td><td>$SAUCE<br>$XSAUCE<br>$KARATE<br>$STEAM<br>$PACK<br>$GRELF<br>$KBL</td><td>Supply Cap</td><td>14,832,201<br>43,384,117<br>3,229,337,939<br>22,781,362<br>14,120,275<br>2,849,834<br>49,450,838</td><td>10,000,000<br>35,000,000<br>2,000,000,000<br>19,781,362<br>10,120,275<br>949,834<br>45,450,838</td></tr><tr><td><strong>8/6/2025</strong></td><td>$KARATE</td><td>LTV<br>Liquidation Threshold</td><td>50.00%<br>57.00%</td><td>25%<br>65%</td></tr><tr><td><strong>8/6/2025</strong></td><td>$PACK</td><td>Borrow Cap</td><td>16,053,200</td><td>3,500,000</td></tr><tr><td><strong>8/6/2025</strong></td><td>$BONZO<br>$DOVU</td><td>Supply Cap</td><td>41,480,000<br>435,394,769</td><td>30,000,000<br>230,000,000</td></tr><tr><td><strong>7/30/2025</strong></td><td>$USDC</td><td>Borrow Cap</td><td>3,449,222</td><td>5,500,000</td></tr><tr><td><strong>7/28/2025</strong></td><td><p>$SAUCE</p><p>$XSAUCE</p><p>$KARATE</p><p>$DOVU</p><p>$PACK</p><p>$HST</p><p>$STEAM</p><p>$GRELF</p><p>$KBL</p><p>$BONZO</p></td><td>Supply Cap</td><td>New Parameter</td><td>14,832,201<br>43,384,117<br>3,229,337,939<br>435,394,769<br>14,120,275<br>26,725,453<br>22,781,362<br>2,849,834<br>49,450,838<br>41,480,000</td></tr><tr><td><strong>7/11/2025</strong></td><td>$USDC<br>$KARATE<br>$BONZO<br>$GRELF<br>$KBL</td><td>Borrow Cap</td><td>3,449,222<br>750,000,000<br>5,000,000<br>500,000<br>13,000,000</td><td>4,000,000<br>803,014,392<br>8,400,000<br>678,611<br>17,335,529</td></tr><tr><td><strong>5/13/2025</strong></td><td>$BONZO<br>$GRELF<br>$KBL</td><td>Borrow Cap</td><td>3,500,000<br>160,000<br>5,000,000</td><td>5,000,000<br>500,000<br>13,000,000</td></tr><tr><td><strong>5/13/2025</strong></td><td>$KARATE<br>$DOVU<br>$STEAM<br>$BONZO<br>$GRELF<br>$KBL</td><td>Liquidation Threshold</td><td>52.00%<br>52.00%<br>52.00%<br>52.00%<br>43.00%<br>43.00%</td><td>57.00%<br>59.00%<br>57.00%<br>59.00%<br>59.00%<br>57.00%</td></tr><tr><td><strong>5/13/2025</strong></td><td>$KARATE<br>$DOVU<br>$STEAM<br>$BONZO<br>$GRELF<br>$KBL</td><td>Loan-to-Value (LTV)</td><td>45.00%<br>45.00%<br>45.00%<br>30.00%<br>30.00%<br>30.00%</td><td><p>50.00%</p><p>50.00%</p><p>50.00%</p><p>50.00%</p><p>50.00%</p><p>50.00%</p></td></tr><tr><td><strong>5/1/2025</strong></td><td>$BONZO</td><td>Loan-to-Value (LTV)<br>Liquidation Threshold<br>Liquidation Bonus<br>Reserve Factor<br>Borrow Cap</td><td>New Asset</td><td>30.00%<br>43.00%<br>6.66%<br>17.25%<br>3,500,000</td></tr><tr><td><strong>4/25/2025</strong></td><td>$KBL</td><td>Borrow Cap</td><td>29,200,000</td><td>5,000,000</td></tr><tr><td><strong>4/24/2025</strong></td><td>$KBL</td><td>Loan-to-Value (LTV)<br>Liquidation Threshold<br>Liquidation Bonus<br>Reserve Factor<br>Borrow Cap</td><td>New Asset</td><td>30.00%<br>43.00%<br>6.66%<br>17.25%<br>29,200,000</td></tr><tr><td><strong>4/1/2025</strong></td><td>$PACK</td><td>Borrow Cap</td><td>2,514,592</td><td>16,053,200</td></tr><tr><td><strong>4/1/2025</strong></td><td>$USDC</td><td>Borrow Cap</td><td>2,941,539</td><td>3,449,222</td></tr><tr><td><strong>3/26/2025</strong></td><td>$GRELF</td><td>Borrow Cap</td><td>656,716</td><td>160,000</td></tr><tr><td><strong>3/25/2025</strong></td><td>$GRELF</td><td>Loan-to-Value (LTV)<br>Liquidation Threshold<br>Liquidation Bonus<br>Reserve Factor<br>Borrow Cap</td><td>New Asset</td><td>30.00%<br>43.00%<br>6.66%<br>17.25%<br>656,716</td></tr><tr><td><strong>3/18/2025</strong></td><td>$KARATE<br>$DOVU<br>$PACK<br>$HST<br>$STEAM</td><td>Liquidation Threshold</td><td>41.00%<br>43.50%<br>43.00%<br>48.00%<br>43.00%</td><td><p>52.00%</p><p>52.00%</p><p>57.00%</p><p>52.00%</p><p>52.00%</p></td></tr><tr><td><strong>3/18/2025</strong></td><td>$KARATE<br>$DOVU<br>$PACK<br>$HST<br>$STEAM</td><td>Loan-to-Value (LTV)</td><td>30.00%<br>30.00%<br>30.00%<br>30.00%<br>30.00%</td><td>45.00%<br>45.00%<br>50.00%<br>45.00%<br>45.00%</td></tr><tr><td><strong>3/18/2025</strong></td><td>$HBARX<br>$USDC<br>$XSAUCE</td><td>Reserve Factor</td><td>14.58%<br>10.40%<br>12.86%</td><td>10.14%<br>13.50%<br>10.94%</td></tr><tr><td><strong>3/18/2025</strong></td><td>$USDC<br>$KARATE<br>$DOVU<br>$PACK<br>$STEAM</td><td>Borrow Cap</td><td>1,875,300<br>218,118,366<br>83,682,008<br>1,941,454<br>11,208,478</td><td><p>2,941,539</p><p>750,000,000</p><p>102,000,000</p><p>2,514,592</p><p>11,372,200</p></td></tr><tr><td><strong>2/14/2025</strong></td><td>$USDC<br>$KARATE<br>$DOVU<br>$HST<br>$STEAM</td><td>Borrow Cap</td><td><p>1,783,375<br>950,959,650<br>296,716,240<br>21,932,392</p><p>19,715,165</p></td><td>1,875,300<br>218,118,366<br>83,682,008<br>12,537,875<br>11,208,478</td></tr><tr><td>2/2/2025</td><td><p>$HBAR</p><p>$HBARX</p><p>$USDC</p><p>$SAUCE</p><p>$XSAUCE</p><p>$KARATE</p><p>$DOVU</p><p>$PACK</p><p>$HST</p><p>$STEAM</p></td><td>Borrow Cap</td><td><p>65,424,962</p><p>25,712,671</p><p>2,314,729</p><p>4,085,167</p><p>20,768,560</p><p>457,526,473</p><p>259,530,259</p><p>1,814,378</p><p>20,294,813</p><p>20,879,107</p></td><td><p>57,034,268</p><p>9,641,854</p><p>1,783,375</p><p>4,376,629</p><p>18,755,218</p><p>950,959,650</p><p>296,716,240</p><p>1,941,454</p><p>21,932,392</p><p>19,715,165</p></td></tr><tr><td><strong>01/31/2025</strong></td><td>$USDC<br>$HBAR</td><td>Borrow Cap</td><td>1,017,153<br>12,696,906 </td><td>2,314,729<br>65,424,962</td></tr><tr><td><strong>1/28/2025</strong></td><td><p>$HBAR</p><p>$USDC</p></td><td>Borrow Cap</td><td><p>27,989,525</p><p>2,138,912</p></td><td><p>65,424,962</p><p>2,314,729</p></td></tr><tr><td><strong>1/25/2025</strong></td><td><p>$HBAR</p><p>$USDC</p></td><td>Borrow Cap</td><td>13,493,843 1,257,182</td><td><p>27,989,525</p><p>2,138,912</p></td></tr><tr><td><strong>1/13/2025</strong></td><td>$KARATE<br>$DOVU<br>$PACK<br>$HST<br>$STEAM</td><td>Liquidation Threshold</td><td>0.02%<br>0.02%<br>0.02%<br>0.02%<br>0.02%</td><td><p>41.00% </p><p>43.50%</p><p>43.00%</p><p>48.00%</p><p>43.00%</p></td></tr><tr><td><strong>1/13/2025</strong></td><td>$KARATE<br>$DOVU<br>$PACK<br>$HST<br>$STEAM</td><td>Loan-to-Value (LTV)</td><td>0.01%<br>0.01% <br>0.01% <br>0.01% <br>0.01%</td><td>30.00% 30.00% 30.00% 30.00% 30.00%</td></tr><tr><td><strong>1/8/2025</strong></td><td>$HBAR<br>$HBARX<br>$USDC<br>$SAUCE<br>$XSAUCE<br>$KARATE<br>$DOVU<br>$PACK<br>$HST<br>$STEAM</td><td>Borrow Cap</td><td>12,874,870 23,930,116 696,641 5,020,146 21,258,578 456,725,925 251,807,558 1,928,615 20,254,780 19,076,860</td><td>13,493,843 25,712,671 1,257,182 4,085,167 20,768,560 457,526,473 259,530,259 1,814,378 20,294,813 20,879,107</td></tr><tr><td><strong>12/27/2024</strong></td><td>$HBAR<br>$HBARX<br>$USDC<br>$SAUCE<br>$XSAUCE<br>$KARATE<br>$DOVU<br>$PACK<br>$HST<br>$STEAM</td><td>Borrow Cap</td><td>13,147,016 23,934,448 1,335,740 5,440,193 20,566,527 170,317,292 101,344,300 812,343 8,454,396 7,801,459</td><td>12,874,870 23,930,116 696,641 5,020,146 21,258,578 456,725,925 251,807,558 1,928,615 20,254,780 19,076,860</td></tr><tr><td><strong>12/23/2024</strong></td><td>$USDC</td><td>Borrow Cap</td><td>745,902</td><td>1,335,740</td></tr><tr><td><strong>12/20/2024</strong></td><td>$HBAR<br>$HBARX<br>$USDC<br>$SAUCE<br>$XSAUCE<br>$KARATE<br>$DOVU<br>$PACK<br>$HST<br>$STEAM</td><td>Borrow Cap</td><td>12,696,906 23,338,766 713,273 4,751,002 20,411,784 98,497,690 101,194,454 811,403 8,458,395 7,389,362</td><td>13,147,016 23,934,448 745,902 5,440,193 20,566,527 170,317,292 101,344,300 812,343 8,454,396 7,801,459</td></tr><tr><td><strong>12/18/2024</strong></td><td>$HBAR<br>$HBARX<br>$USDC<br>$SAUCE<br>$XSAUCE<br>$KARATE<br>$DOVU<br>$PACK<br>$HST<br>$STEAM</td><td>Borrow Cap</td><td>9,268,465 14,975,362 691,146 2,455,823 13,917,964 117,808,061 89,258,923 873,709 12,065,370 5,585,154</td><td>12,696,906 23,338,766 713,273 4,751,002 20,411,784 98,497,690 101,194,454 811,403 8,458,395 7,389,362</td></tr><tr><td><strong>12/16/2024</strong></td><td>$USDC</td><td>Borrow Cap</td><td>1,017,153</td><td>691,146</td></tr><tr><td><strong>12/14/2024</strong></td><td>$USDC</td><td>Borrow Cap</td><td>1,005,373</td><td>1,017,153</td></tr></tbody></table>