# Money Market Parameters

### Main Pool Live Parameters (as of May 2025)

| Asset  | Reserve Factor (%) | Liquidation Penalty (%) | Close Factor (%) | Jump Multiplier (%) | Base Multiplier (%) | Base Rate (%) | Kink Point (%) | Collateral Factor (%) | Supply Cap      | Borrow Cap |
| ------ | ------------------ | ----------------------- | ---------------- | ------------------- | ------------------- | ------------- | -------------- | --------------------- | --------------- | ---------- |
| USDC   | 10                 | 10                      | 50               | 100                 | 7                   | 0             | 80             | 80                    | 0               | 0          |
| USDT   | 10                 | 10                      | 50               | 100                 | 7                   | 0             | 80             | 80                    | 0               | 0          |
| DAI    | 10                 | 10                      | 50               | 100                 | 7                   | 0             | 80             | 80                    | 0               | 0          |
| CRO    | 10                 | 10                      | 50               | 100                 | 7                   | 0             | 80             | 70                    | 0               | 0          |
| WETH   | 20                 | 10                      | 50               | 50                  | 10                  | 3             | 75             | 75                    | 0               | 0          |
| WBTC   | 20                 | 10                      | 50               | 50                  | 10                  | 3             | 75             | 75                    | 0               | 0          |
| TONIC  | 15                 | 10                      | 50               | 120                 | 25                  | 3             | 55             | 20                    | 50 Trn TONIC    | 0          |
| ATOM   | 10                 | 10                      | 50               | 100                 | 15                  | 3             | 80             | 70                    | 50,000 ATOM     | 0          |
| ADA    | 20                 | 10                      | 50               | 50                  | 5                   | 3             | 65             | 70                    | 0               | 0          |
| VVS    | 15                 | 10                      | 50               | 120                 | 25                  | 3             | 55             | 55                    | 0               | 0          |
| XRP    | 20                 | 10                      | 50               | 50                  | 5                   | 3             | 65             | 70                    | 260,000 XRP     | 0          |
| LTC    | 20                 | 10                      | 50               | 50                  | 5                   | 3             | 65             | 70                    | 500 LTC         | 0          |
| LCRO   | 15                 | 10                      | 50               | 200                 | 25                  | 3             | 60             | 70                    | 0               | 0          |
| cdcBTC | 20                 | 10                      | 50               | 100                 | 15                  | 3             | 60             | 70                    | 147 cdcBTC      | 0          |
| cdcETH | 20                 | 10                      | 50               | 100                 | 15                  | 3             | 60             | 70                    | 400 cdcETH      | 0          |
| USC    | 15                 | 10                      | 50               | 100                 | 10                  | 0             | 70             | 75                    | 0.5 Million USC | 0          |

### Definitions

**Reserve Factor**

* The percentage of the spread between borrower's and lender's interest rates that accrues to the Tectonic protocol's treasury. It is made to sustain the protocol and pay protocol contributors.
* Example: Reserve factor of 20% means that 20% of the interest paid on the asset is for the protocol.

**Collateral Factor**

* The maximum that can be borrowed on a particular asset.
* Example: CRO collateral factor is 50%, if the price of CRO is $100, the maximum that can be borrowed using CRO as collateral is $50 in other assets.

**Close Factor**

* The maximum amount that can be liquidated in a single transaction.
* Example: 50% Close Factor means that a maximum of 50% of an account's borrow that is enabled as collateral can be repaid in a single liquidate transaction.

**Liquidation Penalty**

* The Liquidation Fee is 10% with 7.2% going to liquidators as an incentive to perform liquidations and to keeping the protocol solvent, while the remaining 2.8% goes to Tectonic's treasury. 
* The funds accruing to Tectonic are used for expenses related to protocol maintenance (such as operating expenses) and to fund further developments.

**Base Rate**

* Please see the explanation of Tectonic's jump rate interest rate model [here](https://tectonic.gitbook.io/docs/protocol/interest-rate-models/jump-kink-model)

**Kink Point**

* Please see the explanation of Tectonic's jump rate interest rate model [here](https://tectonic.gitbook.io/docs/protocol/interest-rate-models/jump-kink-model)

**Jump Multiplier**

* Please see the explanation of Tectonic's jump rate interest rate model [here](https://tectonic.gitbook.io/docs/protocol/interest-rate-models/jump-kink-model)

**Supply Cap**

* The maximum total amount that users can supply to that specific market

**Borrow Cap**

* The maximum total amount that users can borrow from that specific market