# Notional V2 Governance Parameters
### What is Notional?
Notional is a protocol on Ethereum that facilitates fixed-rate, fixed-term crypto asset lending and borrowing through a novel financial instrument called fCash. Learn more about how Notional V2 works [here](https://docs.notional.finance/notional-v2/).
### How is Notional governed?
$NOTE token holders can participate in Notional’s governance either by proposing or voting on parameter change proposals.
Anyone can propose or vote on Notional Request for Comments (NRCs) or Notional Improvement Proposals (NIPs) through the [Notional Governance Forum](https://commonwealth.im/notional).
Official votes are held through the [Notional Snapshot](https://snapshot.org/#/notional.eth).
Learn more about governance [here](https://docs.notional.finance/notional-v2/governance/the-note).
### What is the purpose of governance parameters?
Notional's governance parameters aim to minimize under collateralization risks while optimizing for capital efficiency and usability. Creating this balance requires the selection of a set of parameters that influences the platform's risk and trading dynamics.
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