> For the complete documentation index, see [llms.txt](https://docs.syndromics.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.syndromics.xyz/collateral-and-assets/collateral-tiers.md).

# Collateral tiers

Syndromics tiers collateral by **liquidity and oracle quality**, not by name or brand. A token's tier determines its maximum origination LTV, its liquidation LTV and the haircut applied when the underlying market is closed.

{% hint style="info" %}
These are the parameters in force. They live in the ParamController and change only through the timelock with a published rationale; the governance log records every change.
{% endhint %}

## Tier table

| Tier  | Examples                                                                           | Max LTV (regular session)                  | Liquidation LTV             | Closed-market haircut | Notes                                                        |
| ----- | ---------------------------------------------------------------------------------- | ------------------------------------------ | --------------------------- | --------------------- | ------------------------------------------------------------ |
| **A** | Index and mega-cap: SPY, QQQ, AAPL, MSFT, NVDA                                     | 55%                                        | 70%                         | 10 points             | Deepest DEX liquidity on Robinhood Chain                     |
| **B** | Large-cap single names, roughly the top 100 by DEX depth                           | 45%                                        | 60%                         | 10 points             |                                                              |
| **C** | Long tail: everything else with a live Chainlink feed                              | 30%                                        | 45%                         | 15 points             | Lenders must opt in per token                                |
| **D** | No live oracle: private-company tokens (SpaceX or OpenAI-linked), if still offered | Lender-negotiated, 25% recommended ceiling | None. Maturity default only | n/a                   | No automatic liquidation. Roadmap, professional lenders only |

## How the numbers are used

* **Max LTV** is the ceiling at origination. A request above it cannot settle. Each lender's offer also carries its own `maxLtvBps`, which must be at or under the tier maximum, so lenders can be more conservative than the tier but never less.
* **Liquidation LTV** is the level at which the health factor reaches 1.0. The gap between max LTV and liquidation LTV is the buffer a borrower has before a warning and then an auction.
* **Closed-market haircut** is subtracted from both ceilings when the Chainlink feed reports the market as closed or the price is stale. A Tier A loan that was originated at 55% on a Friday afternoon is measured against a 60% liquidation LTV over the weekend rather than 70%.

## Per-token caps

Alongside tiers, every token has a **dollar-denominated exposure cap**: the maximum total principal that can be outstanding against it across all loans. Caps start conservative (they are tied to observed DEX depth and auction performance) and grow as liquidation data accumulates. The current cap and utilisation for every token are shown on the public risk page.

## Moving between tiers

Tier assignment is a ParamController value per token. A token is promoted or demoted based on:

* sustained DEX depth on Robinhood Chain,
* Chainlink feed quality (update frequency, deviation threshold, Data Streams availability),
* realised auction prices relative to oracle in past liquidations,
* issuer or corporate-action events.

Demotion takes effect for new loans immediately after the timelock. Existing loans keep their origination terms until maturity, but their liquidation LTV follows the new tier after a grace period that is announced with the change.

## Tier D

Tier D covers tokens with no live oracle, which means tokens linked to private companies. These loans are bilateral, professionally negotiated, and carry **no automatic liquidation** because there is no price to liquidate against. Recovery is at maturity only: if the borrower does not repay within the grace window, the collateral is transferred to the lenders. Tier D is on the roadmap, restricted to `LENDER_PROFESSIONAL`, and is documented in full when it opens.


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