Isolation Mode

What is Isolation Mode

Isolation mode is a feature that allows the C14 Governance to list new assets called isolated assets, which has a set borrowing limit, known as a debt ceiling. This limit is the highest amount in USD that you can borrow using your collateral, calculated with precision up to two decimal places. When you use an asset in isolation mode as collateral, you can only borrow specific stablecoins that C14 governance has approved for such transactions.

Getting into Isolation Mode

To start using isolation mode, you need to work with certain assets that C14 Governance has selected and approved. You can't use assets that aren't designated for isolation mode as your collateral for entering into this mode.

Leaving Isolation Mode

If you decide to leave isolation mode, you need to disable the collateralized isolated asset that you have supplied.

The Impact of Isolation Mode on Borrowing

Once you're in isolation mode, your ability to borrow is restricted to certain stablecoins. This limitation is shown in the "Assets to Borrow" area, where only the eligible stablecoins are listed. Each isolated asset comes with its own debt ceiling, limiting how much you can borrow to this preset maximum. You can find the specific debt ceiling for each asset on its reserves page.