Documentation
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  • Welcome to Mars Protocol
  • Getting Started
    • How to set up a Wallet
    • Connect your wallet
    • Using a Credit Account
  • Credit Accounts
  • Perpetual Futures (Perps)
    • Perps Vault (Counterparty Vault)
    • Funding Rate Mechanism
    • Price Impact
    • Open Interest Caps
    • Vault Solvency Protection
    • Health Factor
    • Liquidations
  • Spot & Margin Trading
  • Lending & Borrowing
  • Leveraged Yield Farming
  • High Leverage Strategies
  • Managed Vaults
    • Creating a Vault
      • How to Resume Vault Creation After Failed Transaction
    • Managing a Vault
    • Depositing into Vault
  • Risk Methodology
    • Asset Listing
    • Protocol Risk Framework
    • Perps Risk Framework
      • Maximum Leverage & LTVs
      • SkewScale
      • Open Interest Caps
      • Maximum Funding Velocity
      • Mitigating Risks of Static Parameters
    • Deposit Caps Risk Framework
  • Governance
    • MARS Token
  • Smart Contracts
    • Address Provider
    • Account NFT
    • Credit Manager
    • Health
    • Incentives
    • Oracle
    • Params
    • Red Bank
    • Rewards Collector
    • Swapper
    • Zapper
    • Perps
  • Brand kit
    • The Mars Brand
  • Legal
    • Mars FUD Bible
    • Terms of Service
    • Privacy Policy
    • Cookie Policy
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  • Evaluation Criteria
  • Impermanent Loss & LP Tokens
  • Final Approval
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  1. Risk Methodology

Asset Listing

Each asset—whether a standard token, an LP token, or part of a new protocol integration—must undergo careful evaluation before being added to Mars Protocol.

This process ensures that only liquid, well-governed, and secure assets are supported for lending, borrowing, or use as collateral.


Evaluation Criteria

1. Technical and Centralization Risks

  • Security of underlying smart contracts

  • Protocol governance and upgradeability

  • Oracle pricing infrastructure

  • Bridging mechanisms (if applicable)

2. Asset Type Considerations

Mars applies tailored rules depending on asset class:

• Single Tokens

  • Examples: dNTRN, USDC, TIA

  • Assessed for price stability, market depth, and liquidity

• LP Tokens

  • Examples: NTRN-USDC LP, dTIA-USDC LP

  • Evaluated for impermanent loss exposure, dual-asset correlation, and DEX mechanics

LP tokens may have lower LTVs due to IL risk and more complex price dynamics.


Impermanent Loss & LP Tokens

Because LP tokens are subject to impermanent loss (IL)—especially during volatile market movements - the Mars framework may impose:

  • Lower maximum LTVs

  • Higher collateral thresholds for liquidation

  • Stricter caps on borrowable amounts


Final Approval

After both evaluation phases, final parameters are defined, including:

  • Loan-to-Value (LTV) Ratio

  • Borrow and Deposit Caps

  • Liquidation Thresholds

  • Supported Use Cases (collateral, borrowing, lending)



Last updated 4 days ago

All asset listings are governed by the , ensuring decentralized, community-led risk management aligned with Mars Protocol's mission of secure, composable DeFi infrastructure.

Mars Protocol DAO