> 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/transparency/governance.md).

# Changing parameters

Nothing in the core contracts can be upgraded. Governance touches parameters and nothing else, and every parameter change passes through one public, timelocked procedure.

## Scope of governance

| Within scope                                                  | Out of scope                                    |
| ------------------------------------------------------------- | ----------------------------------------------- |
| Tier LTVs, haircuts and caps                                  | Upgrading or replacing core contract code       |
| Oracle adapters, staleness bounds and move caps               | Moving escrowed collateral or lender principal  |
| Auction curves and refinance parameters                       | Pausing repayment or post-repayment withdrawal  |
| Fee rates                                                     | Altering the terms of a live loan retroactively |
| Adding or removing attestation issuers and whitelisted vaults | Minting $ETHOSIS (supply is fixed)              |
| Pausing new loans and liquidations in an emergency            | Acting before the timelock delay has elapsed    |

## Steps

1. **Draft.** The change is written up with a rationale and, where it applies, backtesting or data drawn from the risk page.
2. **Publish.** The proposal goes onto the governance log with the parameter, the old value, the new value and the rationale. The timelock clock starts.
3. **Wait.** The published PolicyController delay runs, giving anyone time to review and respond. The guardian pause is the sole action that skips the delay, and it can only pause.
4. **Execute.** The multisig applies the change and `PolicyController` emits `ParamChanged(key, oldValue, newValue, rationaleHash)`.
5. **Archive.** The explorer's governance log keeps the proposal, the execution transaction and the rationale on permanent display.

## Loans already open

* Origination and refinance fees stay at the rate that applied when the loan was originated or refinanced.
* The interest share stays at the rate in force at origination.
* When a tier is demoted, the liquidation LTV of existing loans changes only after a grace period announced alongside the change, giving borrowers time to react.
* Oracle adapter changes take effect at once, because they are corrective.

## Emergency pause

The pause applies only to new loans and liquidations. It exists for oracle incidents, newly found vulnerabilities and chain-level events, and it cannot affect repayment. Each use is logged with a rationale and followed by a published incident note.

## Key holders

The foundation holds the timelocked multisig, with signers drawn from the team and from independent parties. The governance module on the roadmap will take over parameter control while keeping the timelock, the public rationale, the absence of fund access and the guarantee that repayment cannot be paused. See [Corporate structure](/compliance/corporate-structure.md).


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