> For the complete documentation index, see [llms.txt](https://docs.notional.finance/v3-risk-parameters/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.notional.finance/v3-risk-parameters/asset-liquidity-risk/prime-cash-supply-caps.md).

# Prime Cash Supply Caps

Notional's governance can set Prime Cash supply caps that effectively limit the maximum amount of Prime Cash that can be minted in a given currency. Governance can set the `maxUnderlyingSupply` for all listed currencies. The `maxUnderlyingSupply` sets the maximum amount of Prime Cash that can be minted based on a value in underlying terms.

Supply caps are important because they can put a practical limit on the total value of a given currency that can be used as Prime Cash collateral. This allows Notional's governance to be able to list less liquid assets in a capital-efficient manner by limiting the protocol's exposure.

### Parameter selection considerations

When setting Prime Cash supply caps, Notional's governance should consider the asset's on-chain liquidity profile and the demand from Notional users for that asset.