System Parameters¶

All protocol parameters are defined as constants in LiquidityVault. None are dynamically adjustable post-deployment in the MVP.

Protocol Constants¶

Parameter	Constant Name	Value	Description
Daily redemption cap	`dailyCapBps`	`200` (2%)	Maximum redeemable per 24h window, as a fraction of market NAV
Liquidity fee	`liquidityFeeBps`	`50` (0.5%)	Flat fee deducted from every redemption payout, transferred to HouseBuffer
Reserve target	`reserveTargetBps`	`1500` (15%)	Target idle USDC as a fraction of TVL
Max positions	`MAX_POSITIONS`	`4`	Fixed size of the position array
Rebase cooldown	`REBASE_COOLDOWN`	`7 days`	Minimum time between rebases on the same position (waived for zero-price write-off)
Pause gap threshold	`PAUSE_GAP_BPS`	`1500` (15%)	Aggregate gap level that triggers automatic withdrawal pause
Max topup per call	`MAX_TOPUP_BPS`	`1000` (10%)	Maximum fraction of HouseBuffer balance transferable per `topUpReserve()` call

The daily cap is computed from market NAV (not modeled NAV) to prevent inflation during stress:

dailyCap = aggMarketNAV × dailyCapBps / 10000
         = aggMarketNAV × 2%

The reserve target determines how much idle USDC the vault maintains for immediate redemptions:

reserveTarget = TVL × reserveTargetBps / 10000
              = TVL × 15%

Capital above this threshold is available for deployment into new positions.

deployableCapital = idleReserve - reserveTarget

The operator must never deploy the reserve tranche. The openPosition() function enforces this on-chain.

Parameter	Rationale
2% daily cap	Limits single-day redemption pressure. At $2M TVL, max $40K/day exits — manageable from idle reserve without forced liquidation.
0.5% fee	Generates HouseBuffer income (~$36K/year at $2M TVL) while remaining low enough not to deter normal redemptions.
15% reserve	Provides ~7.5 days of maximum redemption capacity before the reserve is exhausted. Triggers topup request at 50% depletion.
7-day rebase cooldown	Prevents rapid serial rebases that could systematically drain NAV.
15% pause gap	Pauses when the spread between modeled and market NAV exceeds 15% — indicating significant unacknowledged impairment.