> For the complete documentation index, see [llms.txt](https://docs.ethosis.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ethosis.org/assets/collateral-tiers.md). # Tiering collateral A token's tier in Ethosis is decided by two things: how liquid it is and how good its oracle is. Ticker, issuer brand and popularity play no part. From the tier follow three numbers: the highest LTV a loan can be originated at, the LTV at which liquidation begins, and the haircut that applies while the underlying market is shut. {% hint style="info" %} The figures below are the live parameters. They are stored in the PolicyController and can only be altered through the timelock, each change accompanied by a published rationale and recorded in the governance log. {% endhint %} ## Tiers and their limits | Tier | Typical members | Origination ceiling (regular session) | Liquidation threshold | Haircut when market closed | Remarks | | ----- | ---------------------------------------------------------------------------------------------------- | ------------------------------------------ | ------------------------------ | -------------------------- | ----------------------------------------------------------------- | | **A** | Index products and mega-caps: SPY, QQQ, AAPL, MSFT, NVDA | 55% | 70% | 10 points | Deepest DEX liquidity on Robinhood Chain | | **B** | Large-cap single names, approximately the 100 deepest by DEX liquidity | 45% | 60% | 10 points | | | **C** | The long tail: any other token with a live Chainlink feed | 30% | 45% | 15 points | Lenders opt in token by token | | **D** | Tokens without a live oracle: private-company tokens (SpaceX- or OpenAI-linked), where still offered | Set by the lender, 25% recommended ceiling | None. Default at maturity only | n/a | No automatic liquidation. Roadmap item, professional lenders only | ## What each figure controls * The **origination ceiling** caps LTV when a loan is created. A request that exceeds it cannot be originated. On top of the tier ceiling, every lender's offer carries its own `maxLtvBps`, which has to be at or below the tier value; a lender can therefore be stricter than the tier, but never looser. * The **liquidation threshold** is where the health factor equals 1.0. The distance between the origination ceiling and this threshold is the borrower's cushion before a warning and, after that, an auction. * The **closed-market haircut** is deducted from both figures whenever the Chainlink feed marks the market closed or the price has gone stale. Take a Tier A loan opened at 55% on a Friday afternoon: through the weekend it is judged against a liquidation threshold of 60% instead of 70%. ## Exposure limits per token Independently of its tier, each token carries a **cap denominated in dollars** on the total principal that may be outstanding against it across every loan. Caps begin conservatively, anchored to observed DEX depth and to how auctions have performed, and are raised as liquidation history builds up. The public risk page shows every token's current cap and how much of it is in use. ## Promotion and demotion Each token's tier is a value held in the PolicyController. A token moves up or down according to: * whether DEX depth on Robinhood Chain has been sustained, * the quality of its Chainlink feed (update cadence, deviation threshold, whether Data Streams are available), * how auction clearing prices in earlier liquidations compared with the oracle, * issuer events or corporate actions. Once the timelock expires, a demotion applies straight away to new loans. Loans already open keep the terms they were originated on until maturity, though their liquidation threshold adopts the new tier's value after a grace period that is announced together with the change. ## The no-oracle tier Tier D is for tokens that have no live price feed, in practice tokens tied to private companies. Loans against them are bilateral and negotiated by professionals, and because there is no price to liquidate against there is **no automatic liquidation**. The only recovery path is at maturity: a borrower who has not repaid by the end of the grace window forfeits the collateral, which passes to the lenders. Tier D is on the roadmap, limited to `LENDER_PROFESSIONAL`, and will be documented fully when it opens. --- # Agent Instructions This documentation is published with GitBook. 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