### Description
Risk parameters are best adjusted according to market conditions to balance insolvencies, liquidations, and capital efficiency. Setting minimum collateral ratios at appropriate levels can provide adequate guardrails for users without restricting them too heavily. Raising the minimum collateral ratio can prevent users from taking on additional risk in complicated market conditions and token price volatility. Liquidation is an important tool for managing systemic risk and encouraging responsible borrowing. Higher liquidation fees can reduce insolvency risk by encouraging borrowers to be more cautious and responsible when taking on debt, to maintain adequate levels of collateral and avoid taking on excessive risk.

### Proposal
The following suggestion is proposed to optimize for risk and capital efficiency for Acala.
+ Increase Minimal Collateral Ratio of ACA from 2.1 to 2.15
+ Increase Liquidation Fee from 15% to 18%

- Risk parameters need to be adjusted to balance insolvencies, liquidations, and capital efficiency.
- Minimum collateral ratios need to be set at appropriate levels to provide guardrails for users.
- Raising the minimum collateral ratio can prevent users from taking on too much risk.
- Higher liquidation fees can reduce insolvency risk and encourage responsible borrowing.
- The proposal suggests increasing the minimal collateral ratio of ACA from 2.1 to 2.15 and increasing the liquidation fee from 15% to 18%.

Risk Parameter Change

No Active Proposals