## Background
https://acala.discourse.group/t/acala-risk-parameter-change-proposal-may-2023/2096

## Proposal
The following suggestion is proposed to optimize for risk management for Acala.

+ Decrease Debt Ceiling of DOT from 50M to 20M
+ Decrease Debt Ceiling of LDOT from 5M to 2M
+ Decrease Debt Ceiling of LCDOT from 6M to 2M
+ Decrease Debt Ceiling of ACA from 6M to 1.5M

Risk parameters are best adjusted according to market conditions to balance insolvencies, liquidations, and capital efficiency. A lower debt ceiling helps mitigate the risk associated with excessive debt exposure and enable the protocol to remain solvent and resilient in volatile market conditions.



- The proposal suggests decreasing the debt ceilings for DOT, LDOT, LCDOT, and ACA.
- Lowering the debt ceilings helps manage risk and make the protocol more stable.
- This change is important for the protocol to stay solvent and strong in unpredictable market conditions.

Acala Risk Parameter Change Proposal - May 2023

No Active Proposals