> For the complete documentation index, see [llms.txt](https://constant-finance.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://constant-finance.gitbook.io/docs/v0/deployment/risk-configuration.md).

# Risk Configuration

This page records the Config deployed on Ethereum Sepolia. New Positions receive this Config through the Position Builder, while existing Positions keep the Config they were given at creation.

## How to Read the Parameters

| Parameter             |          Precision | Meaning in this deployment                                                                                            |
| --------------------- | -----------------: | --------------------------------------------------------------------------------------------------------------------- |
| LTV                   |    `10,000 = 100%` | Stored for each supported collateral asset, but not enforced as a separate opening limit by the current Position path |
| Liquidation threshold |    `10,000 = 100%` | Used in the weighted collateral health boundary when a Position opens and throughout its lifecycle                    |
| Liquidation bonus     |    `10,000 = 100%` | Additional collateral value permitted as compensation for a liquidator                                                |
| Fee rate              | `1,000,000 = 100%` | The share of the borrower unit rate retained as protocol spread                                                       |

A fee rate of 15% is not a standalone 15% annual borrowing rate. It means the protocol retains 15% of the borrower rate as spread when establishing the fixed supplier rate.

The current Config sets the minimum liquidation size to zero. As a result, no size-based exception to the standard pre-maturity partial-liquidation limit is active in this deployment.

## ERC-20 Collateral

| Token | Whitelisted | Stored LTV | Liquidation threshold | Liquidation bonus | Fee rate |
| ----- | ----------: | ---------: | --------------------: | ----------------: | -------: |
| CFT   |         Yes |        70% |                   75% |                5% |      15% |
| WETH  |         Yes |        80% |                   85% |                5% |      15% |
| WBTC  |         Yes |        70% |                   75% |                5% |      15% |
| USDC  |         Yes |        75% |                   80% |                5% |       8% |
| USDT  |         Yes |        75% |                   80% |                5% |       8% |

The fee rate is keyed by debt asset. The collateral columns show how the same token is treated when it is registered as Position collateral.

## Uniswap V3 LP NFT Collateral

LP NFT risk is keyed by the Position Manager and the underlying token pair. The encoding function does not sort the token addresses, so the input order shown below is part of each deployed key.

| Pair      | Key input order | Collateral key                                                       | Whitelisted | Stored LTV | Liquidation threshold | Liquidation bonus |
| --------- | --------------- | -------------------------------------------------------------------- | ----------: | ---------: | --------------------: | ----------------: |
| USDT/WETH | USDT, WETH      | `0x22e38ce001ca2b3d3febb97b9c1fe60532ac31f332be1acf2dedb2fa291edf2c` |         Yes |        75% |                   80% |                5% |
| USDC/WETH | USDC, WETH      | `0xefe2734eae104f5a17abd5c2a370c6946bf07beb94dbaa9a920d3126fc952203` |         Yes |        75% |                   80% |                5% |
| USDT/WBTC | USDT, WBTC      | `0x42b2358433f20ea70e01b3e6bcf60542736c33f4db3385ef5be45bcf522e4ea0` |         Yes |        70% |                   75% |                5% |
| USDC/WBTC | WBTC, USDC      | `0x960739fc02a768dcc51cc78a301aa0be2574415220e83cf6fa7058657c24d03d` |         Yes |        70% |                   75% |                5% |
| USDT/CFT  | USDT, CFT       | `0x03ff5259e56ec924962a66bb12a0d455dc4c5a8ed00843919f45fd1f27a79610` |         Yes |        70% |                   75% |                5% |
| USDC/CFT  | USDC, CFT       | `0x5d62616359d2d4c4651567ca695b8b326ad9c119e5a83cbd1d374e85ad491a00` |         Yes |        70% |                   75% |                5% |

These entries show that the listed Uniswap V3 LP NFTs can be registered and valued as collateral. They do not imply the availability of any additional borrowing product beyond the active Basic and Refinance routes.

## Oracle Configuration

The oracle reports USD values with eight decimal places. Token quantities keep the decimals of their underlying ERC-20 token.

| Token | Token decimals | Feed type                          | Maximum accepted price age |
| ----- | -------------: | ---------------------------------- | -------------------------: |
| WBTC  |              8 | External Chainlink-compatible feed |                   365 days |
| WETH  |             18 | External Chainlink-compatible feed |                   365 days |
| USDT  |              6 | Controlled test feed               |                   365 days |
| USDC  |              6 | External Chainlink-compatible feed |                   365 days |
| CFT   |              6 | Controlled test feed               |                   365 days |

The 365-day limit is suitable only as a Sepolia testing choice. It materially weakens freshness guarantees and should not be read as a recommended production value.

## Current Health-Check Boundary

For a Position with several collateral assets, the protocol weights each liquidation threshold by the asset's current USD value. It then compares the resulting risk-adjusted collateral value with the current debt value, including accrued borrower interest.

Although the stored LTV values are listed above, the current Position initialization and ongoing health checks do not apply them as a separate, stricter limit. The effective health boundary is the weighted liquidation threshold.

## Other Fee Settings

At the deployment snapshot:

* the Basic fixed origination fee was zero;
* no fee-payment token was enabled for a non-zero Basic origination fee; and
* Config contained no token-denominated gas-fee amounts.

These values describe the August 31, 2026 deployment snapshot. A future Config deployment may use different settings.


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