# Reserve A reserve is an instance of a token within a MORE market, governed by a set of parameters designed to manage risk and optimize liquidity. Unlike governance-driven systems, these parameters are established by the creator of each market at the time of deployment and can only be modified by them. This permissionless approach allows for the independent creation of market conditions without requiring external approval or consensus. ## **Key Reserve Parameters** * **Loan-to-Value (LTV)**: Determines the maximum borrowing capacity relative to the collateral’s value. For example, an LTV of 80% means a borrower can take out a loan worth up to 80% of their deposited collateral. Assets with an LTV of 0% cannot be used as collateral. * **Liquidation Threshold**: Defines the point at which a borrower’s position becomes subject to liquidation. If the value of the collateral falls below this threshold, liquidation may occur to repay outstanding debt. * **Borrowing Enabled**: Indicates whether a reserve allows its liquidity to be borrowed. If borrowing is disabled, liquidity can only be supplied or withdrawn. * **Caps** are restrictions help maintain liquidity availability and prevent overexposure to volatility. * **Supply cap**: Sets limits on how much of a token can be supplied to a market. * **Borrow cap**: Sets limits on how much of a token can be borrowed from a market. * **Interest Rate Model**: Interest rates adjust dynamically based on how much liquidity is utilized. As borrowing increases, interest rates rise to incentivize repayment and ensure sufficient liquidity remains available for withdrawals and liquidations. The market creator sets the base rate and utilization curve parameters, which define how rates change based on borrowing demand. ## **Dynamic Parameters in a Permissionless System** Since MORE operates without centralized governance, reserve parameters are entirely defined by the market creator at the time of deployment. These settings do not change unless the creator modifies them, ensuring that market conditions are determined by individual participants rather than collective decision-making. This model allows for flexible, competitive markets where different configurations can emerge to serve diverse market needs. Instead of governance votes, new market with adjusted parameters can be deployed freely, fostering an open and adaptable financial environment. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.more.markets/more-markets/editor-1/markdown.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.