# Max market index

Each cash group in Notional V2 corresponds to a different currency (e.g., DAI, ETH or, WBTC). For every supported cash group, the max market index parameter defines a cash group’s number of active tenors from the following tenor cadence:

* 3 month
* 6 month
* 1 year
* 2 year
* 5 year
* 10 year
* 20 year

As an example, a max market index parameter of 2 would imply that both the 3 month and 6 month tenors are active for a specific cash group, whereas a max market index parameter of 5 would mean that the 3 month, 6 month, 1 year, 2 year and 5 year maturity pools are active for a specific cash group. Learn more about tenors [here](https://docs.notional.finance/notional-v2/quarterly-rolls/tenors).

### Selected parameters 

We selected a max market index value of 3 (3 month, 6 month and 1-year tenors) for USDC & DAI and a max market index value of 2  (3 month and 6 month tenors) for the ETH and WBTC cash groups.  

| Cash Group        | Max Market Index Value               |
| ----------------- | ------------------------------------ |
| **Stablecoins**   |                                      |
| USDC              | 3 (3 month, 6 month & 1 year tenors) |
| DAI               | 3 (3 month, 6 month & 1 year tenors) |
| **Crypto assets** |                                      |
| ETH               | 2 (3 month & 6 month tenors)         |
| WBTC              | 2 (3 month & 6 month tenors)         |

This decision aims to better understand the market demand for the 1-year tenor relative to the 3 and 6 month tenors for the stablecoin cash groups and from there assess the market demand for other longer-dated maturities (e.g. 2 year tenor). This approach is prudent, as activating longer-dated tenors from launch would require to direct part of the nToken account’s liquidity to these tenors (**see Deposit shares section**). Moreover, longer-dated tenors can drastically increase the amount of ifCash residuals the nToken has to hold therefore making nTokens less liquid.   

As for the ETH and WBTC pools, activating only the 3 month and 6 month tenors aims to better understand the market dynamics (interest rates, volumes etc.) for these cash groups before rolling out longer-dated liquidity pools.

Any asset added to the protocol will initially start trading with a max market index of 2 (3 month and 6 month tenors).\ <br>


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