Canceling CP-106: Risk Parameter Updates

Simple Summary

Gauntlet will cancel CP-106. The risk parameter changes proposed in CP-106 will not be implemented at this point.


Several days ago, Gauntlet published CP-106 to increase collateral factors for 7 Compound assets. Voting is scheduled to finish on May 13th in the late evening Eastern Time. The full list of parameter updates can be found in the forum.

Gauntlet’s simulation engine actively monitors market risk on a daily basis and manages risk parameters accordingly. Due to recent market turmoil and current volatility, Gauntlet will cancel CP-106 and not implement the parameter changes initially proposed in this CP.


Gauntlet recommended CP-106 parameter changes on May 4th (roughly 1 week ago). Market conditions are now significantly different from when CP-106 parameter changes were initially recommended. Given current volatility and market uncertainty, it would not be prudent to implement these capital efficiency improvements as they can add insolvency risk in complex ways during this period of stress.

Next Steps

  • Gauntlet will cancel CP-106. As Gauntlet was the proposer of this proposal, no governance vote is needed to execute.