Current parameters

The tables below present a summary of Notional's governance parameters.

Liquidity pool parameters:

Liquidity pools governance parameters influence the number of active maturities per cash group and the shape of each pool's AMM curve:

Max market index parameters

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)

Anchor rates

Cash Group	Anchor rate (3 month)	Anchor rate (6 month)	Anchor rate (1 year)
Stablecoins
USDC	0.035	0.035	0.035
DAI	0.035	0.035	0.035
Crypto assets
ETH	0.03	0.03	NA
WBTC	0.01	0.01	NA

Scalar rates

Cash Group	Scalar rate (3 month)	Scalar rate (6 month)	Scalar rate (1 year)
Stablecoins
USDC	48	47	45
DAI	48	47	45
Crypto assets
ETH	45	45	NA
WBTC	66	66	NA

Initial proportions

Cash Group	Proportion (3 month)	Proportion (6 month)	Proportion (1 year)
Stablecoins
USDC	0.60	0.60	0.60
DAI	0.60	0.60	0.60
Crypto assets
ETH	0.63	0.29	NA
WBTC	0.64	0.42	NA

Maximum market proportion

Cash Group	Maximum market proportion
All	99%

Collateral assets & liquidations

Collateral assets & liquidation parameters influence the free collateral calculations and the liquidation incentives given to liquidators :

Default liquidation portion

Cash Group	Default liquidation portion
All	40%

Oracle rate time window

Cash Group	Oracle rate time window (minute)
All	360 minutes

Exchange rate haircuts

Cash Group	Exchange rate haircut
Stablecoins
USDC	0.92
DAI	0.92
Crypto assets
ETH	0.78
WBTC	0.78

Exchange rate buffers

Cash Group	Exchange rate buffer
Stablecoins
USDC	1.09
DAI	1.09
Crypto assets
ETH	1.29
WBTC	1.29

Exchange rate liquidation discounts

Cash Group	Liquidation discount
Stablecoins
USDC	4.00%
DAI	4.00%
Crypto assets
ETH	6.00%
WBTC	7.00%

fCash haircuts (5 BPS)

Cash Group	fCash haircut
Stablecoins
USDC	110 (550 BPS)
DAI	110 (550 BPS)
Crypto assets
ETH	110 (550 BPS)
WBTC	110 (550 BPS)

Debt buffers (5 BPS)

Cash Group	Debt buffer
Stablecoins
USDC	110 (550 BPS)
DAI	110 (550 BPS)
Crypto assets
ETH	110 (550 BPS)
WBTC	110 (550 BPS)

fCash haircut liquidation discounts (5 BPS)

Cash Group	fCash haircut liquidation discount
Stablecoins
USDC	30 (150 BPS)
DAI	30 (150 BPS)
Crypto assets
ETH	30 (150 BPS)
WBTC	30 (150 BPS)

fCash buffer liquidation discounts (5 BPS)

Cash Group	fCash buffer liquidation discount
Stablecoins
USDC	30 (150 BPS)
DAI	30 (150 BPS)
Crypto assets
ETH	30 (150 BPS)
WBTC	30 (150 BPS)

Settlement penalty rate (5 BPS)

Cash Group	Settlement penalty rate
Stablecoins
USDC	40 (200 BPS)
DAI	40 (200 BPS)
Crypto Assets
ETH	40 (200 BPS)
WBTC	40 (200 BPS)

Liquidity token haircuts

Cash Group	Liquidity token haircut (3 month)	Liquidity token haircut (6 month)	Liquidity token haircut (1 year)
Stablecoins
USDC	0.95	0.90	0.88
DAI	0.95	0.90	0.88
Crypto assets
ETH	0.95	0.90	NA
WBTC	0.95	0.90	NA

Token repo incentive

Cash Group	Token repo incentive
All	30%

nToken PV haircut percentages

Cash Group	nToken PV haircut percentage
Stablecoins
USDC	85%
DAI	85%
Crypto assets
ETH	90%
WBTC	90%

nToken liquidation haircut percentages

Cash Group	nToken liquidation haircut percentage
Stablecoins
USDC	97% or 300 BPS discount
DAI	97% or 300 BPS discount
Crypto assets
ETH	98% or 200 BPS discount
WBTC	98% or 200 BPS discount

nToken parameters

nToken governance parameters influence how nToken accounts allocate their incoming liquidity to different liquidity pools and how they handle fCash residuals upon quarterly rolls:

Deposit shares

Cash Group	Deposit shares (3 month)	Deposit shares (6 month)	Deposit shares (1 year)
Stablecoins
USDC	0.45 (45%)	0.40 (40%)	0.15 (15%)
DAI	0.45 (45%)	0.40 (40%)	0.15 (15%)
Crypto assets
ETH	0.55 (55%)	0.45 (45%)	N.A.
WBTC	0.55 (55%)	0.45 (45%)	N.A.

Leverage thresholds

Cash Group	Leverage threshold (3 month)	Leverage threshold (6 month)	Leverage threshold (1 year)
Stablecoins
USDC	0.84 (~7%)	0.84 (~7%)	0.84 (~7%)
DAI	0.84 (~7%)	0.84 (~7%)	0.84 (~7%)
Crypto assets
ETH	0.86 (~7%)	0.86 (~7%)	NA
WBTC	0.88 (~4%)	0.88 (~4%)	NA

Residual purchase incentives (10 BPS)

Cash Group	Residual purchase incentive
Stablecoins
USDC	20 (200 BPS)
DAI	20 (200 BPS)
Crypto assets
ETH	20 (200 BPS)
WBTC	20 (200 BPS)

Cash withholding buffers (10 BPS)

Cash Group	Cash witholding buffer
Stablecoins
USDC	130 (1300 BPS)
DAI	130 (1300 BPS)
Crypto assets
ETH	90 (900 BPS)
WBTC	90 (900 BPS)

Residual purchase time buffer (Hours)

Cash Group	Residual purchase time buffer
Stablecoins
USDC	24 hours
DAI	24 hours
Crypto assets
ETH	24 hours
WBTC	24 hours

Fees & incentives

Notional fees and incentives governance parameters dictate the proportion of fees charged on every trade and how these fees are split between liquidity providers and the protocol reserves. Moreover these parameters influence the allocation of NOTE incentives to nToken accounts:

Total fee (BPS)

Cash Group	Annualized fee
Stablecoins
USDC	30 BPS
DAI	30 BPS
Crypto assets
ETH	30 BPS
WBTC	30 BPS

Reserve fee shares

Cash Group	Reserve fee share
Stablecoins
USDC	80%
DAI	80%
Crypto assets
ETH	80%
WBTC	80%

Maximum collateral balances

Cash Group	Maximum collateral balance
USDC	No maximum
DAI	No maximum
ETH	No maximum
WBTC	No maximum

Incentive emission rates

Stablecoins
USDC	6,750,000 NOTE
DAI	4,250,000 NOTE
Crypto assets
ETH	2,000,000 NOTE
WBTC	0 NOTE