# Notional V2 Governance Parameters

### What is Notional? <a href="#docs-internal-guid-5d23e7c7-7fff-6011-bf8b-7e0a493d5532" id="docs-internal-guid-5d23e7c7-7fff-6011-bf8b-7e0a493d5532"></a>

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.&#x20;

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.