{
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  "schemaVersion": "1.0.0",
  "id": "borrow-caps",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/borrow-caps/",
  "collection": "defi",
  "title": "Borrow caps: limiting debt without guaranteeing liquidity",
  "description": "Read a lending reserve’s borrow cap alongside available liquidity and account collateral, without confusing a market-wide limit with a personal credit limit.",
  "aliases": [],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T18:15:18.493Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "A borrow cap limits aggregate borrowing of an asset from a reserve under its configured rules. A user may be unable to borrow even with sufficient collateral if the cap is reached or liquidity is unavailable. The cap is separate from the user’s loan-to-value limit and from any isolation-mode debt ceiling.",
    "claimId": "borrow-caps-quick-answer",
    "sourceIds": [
      "aave-reserve",
      "aave-isolation",
      "aave-glossary",
      "aave-pool"
    ]
  },
  "keyFacts": [
    {
      "label": "Aggregate limit",
      "value": "The reserve borrow cap constrains total borrowing of its asset.",
      "sourceIds": [
        "aave-reserve"
      ],
      "id": "aggregate-limit",
      "claimId": "borrow-caps-fact-aggregate-limit"
    },
    {
      "label": "Personal limit",
      "value": "An account’s collateral and health factor impose separate constraints.",
      "sourceIds": [
        "aave-pool"
      ],
      "id": "personal-limit",
      "claimId": "borrow-caps-fact-personal-limit"
    },
    {
      "label": "Isolation",
      "value": "An isolation-mode debt ceiling is a distinct configuration.",
      "sourceIds": [
        "aave-glossary"
      ],
      "id": "isolation",
      "claimId": "borrow-caps-fact-isolation"
    }
  ],
  "prerequisites": [
    "defi-lending-pools"
  ],
  "sections": [
    {
      "id": "three-checks",
      "heading": "A loan must fit several limits at once",
      "sourceIds": [
        "aave-reserve",
        "aave-pool"
      ],
      "paragraphs": [
        "A borrower needs eligible collateral, a permitted borrowing amount, available reserve liquidity and room under applicable market limits. Passing one check does not waive the others.",
        "For example, a user may have room to borrow 10,000 units while the reserve has only 2,000 units of remaining cap headroom."
      ]
    },
    {
      "id": "units",
      "heading": "Do not mix caps without reading their definitions",
      "sourceIds": [
        "aave-reserve",
        "aave-glossary"
      ],
      "paragraphs": [
        "A reserve cap and an isolation ceiling concern different scopes: borrowing an asset from a reserve versus debt issued against designated collateral. Read each parameter’s units and accounting before comparing its number with another limit.",
        "Use the market’s actual parameters and observation block. The same asset can have different limits on different deployments."
      ]
    },
    {
      "id": "change",
      "heading": "Governance can alter future capacity",
      "sourceIds": [
        "aave-reserve"
      ],
      "paragraphs": [
        "A governance change can increase or decrease a cap under the protocol’s rules. It affects permitted actions, not a promise that users will find liquidity or acceptable interest rates.",
        "Existing loans also accrue according to their accounting. A cap should not be described as freezing every borrower’s debt at one amount forever."
      ]
    }
  ],
  "faq": [
    {
      "question": "Does borrowing below my personal LTV guarantee a loan will succeed?",
      "answer": "No. The reserve can still lack liquidity, reach its borrow cap or impose other asset and mode restrictions.",
      "sourceIds": [
        "aave-reserve",
        "aave-pool"
      ]
    }
  ],
  "claims": [
    {
      "id": "borrow-caps-quick-answer",
      "articleSlug": "borrow-caps",
      "statement": "A borrow cap limits aggregate borrowing of an asset from a reserve under its configured rules. A user may be unable to borrow even with sufficient collateral if the cap is reached or liquidity is unavailable. The cap is separate from the user’s loan-to-value limit and from any isolation-mode debt ceiling.",
      "sourceIds": [
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      ],
      "sourceLocators": [
        {
          "sourceId": "source-15989fc372ee02a4",
          "locator": "Key Reserve Parameters; Dynamic Parameters and Governance"
        },
        {
          "sourceId": "source-7ac01b374e81b3ac",
          "locator": "Isolation Mode"
        },
        {
          "sourceId": "source-8847a72e1c4b461f",
          "locator": "APY; Borrow Cap; Credit Delegation; Debt Ceiling"
        },
        {
          "sourceId": "source-b35859a766315ce4",
          "locator": "supply; withdraw; borrow; liquidationCall"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:15:18.493Z",
        "reviewer": "automated independent verification — DeFi expansion reviewer",
        "notes": [
          "Added glossary support for isolation debt ceiling. Narrowed scope/units paragraph to distinguish reserve borrowing from debt issued against designated collateral, without asserting unsupported unit equivalence.",
          "Read reserve cap, Pool collateral/credit-delegation borrow conditions and changing rate/index documentation. Personal collateral headroom, aggregate cap and liquidity are correctly separate."
        ]
      }
    },
    {
      "id": "borrow-caps-fact-aggregate-limit",
      "articleSlug": "borrow-caps",
      "statement": "Aggregate limit: The reserve borrow cap constrains total borrowing of its asset.",
      "sourceIds": [
        "source-15989fc372ee02a4"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-15989fc372ee02a4",
          "locator": "Key Reserve Parameters; Dynamic Parameters and Governance"
        }
      ],
      "scope": {
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      "evidenceStatus": "documented",
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        "checkedAt": "2026-10-02T18:15:18.493Z",
        "reviewer": "automated independent verification — DeFi expansion reviewer",
        "notes": [
          "Added glossary support for isolation debt ceiling. Narrowed scope/units paragraph to distinguish reserve borrowing from debt issued against designated collateral, without asserting unsupported unit equivalence.",
          "Read reserve cap, Pool collateral/credit-delegation borrow conditions and changing rate/index documentation. Personal collateral headroom, aggregate cap and liquidity are correctly separate."
        ]
      }
    },
    {
      "id": "borrow-caps-fact-personal-limit",
      "articleSlug": "borrow-caps",
      "statement": "Personal limit: An account’s collateral and health factor impose separate constraints.",
      "sourceIds": [
        "source-b35859a766315ce4"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-b35859a766315ce4",
          "locator": "supply; withdraw; borrow; liquidationCall"
        }
      ],
      "scope": {
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        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:15:18.493Z",
        "reviewer": "automated independent verification — DeFi expansion reviewer",
        "notes": [
          "Added glossary support for isolation debt ceiling. Narrowed scope/units paragraph to distinguish reserve borrowing from debt issued against designated collateral, without asserting unsupported unit equivalence.",
          "Read reserve cap, Pool collateral/credit-delegation borrow conditions and changing rate/index documentation. Personal collateral headroom, aggregate cap and liquidity are correctly separate."
        ]
      }
    },
    {
      "id": "borrow-caps-fact-isolation",
      "articleSlug": "borrow-caps",
      "statement": "Isolation: An isolation-mode debt ceiling is a distinct configuration.",
      "sourceIds": [
        "source-8847a72e1c4b461f"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-8847a72e1c4b461f",
          "locator": "APY; Borrow Cap; Credit Delegation; Debt Ceiling"
        }
      ],
      "scope": {
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      "evidenceStatus": "documented",
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        "checkedAt": "2026-10-02T18:15:18.493Z",
        "reviewer": "automated independent verification — DeFi expansion reviewer",
        "notes": [
          "Added glossary support for isolation debt ceiling. Narrowed scope/units paragraph to distinguish reserve borrowing from debt issued against designated collateral, without asserting unsupported unit equivalence.",
          "Read reserve cap, Pool collateral/credit-delegation borrow conditions and changing rate/index documentation. Personal collateral headroom, aggregate cap and liquidity are correctly separate."
        ]
      }
    }
  ],
  "sources": [
    {
      "id": "aave-reserve",
      "label": "Reserve",
      "publisher": "Aave",
      "url": "https://www.aave.com/docs/aave-v3/concepts/reserve",
      "locator": "Key Reserve Parameters; Dynamic Parameters and Governance",
      "note": "Reserve LTV, liquidation threshold, borrow availability, caps and rate parameters.",
      "version": "Aave V3 documentation",
      "checkedAt": "2026-10-02T17:03:44.647Z",
      "contentSha256": "d0a67f33949654d88c124c14222ce1e493f86a9895b956b5e7b99c5f8102e672",
      "recordId": "source-15989fc372ee02a4"
    },
    {
      "id": "aave-isolation",
      "label": "Isolation Mode",
      "publisher": "Aave",
      "url": "https://www.aave.com/help/supplying/isolation-mode",
      "locator": "Isolation Mode",
      "note": "Isolated collateral settings, borrowing restrictions and debt ceilings.",
      "version": "Aave V3 documentation",
      "checkedAt": "2026-10-02T17:06:51.590Z",
      "contentSha256": "83db39302bb3c16fb60a64d9da6efb46d9d19931997c58f16aa28aa42bfa003c",
      "recordId": "source-7ac01b374e81b3ac"
    },
    {
      "id": "aave-glossary",
      "label": "Aave Docs Glossary",
      "publisher": "Aave",
      "url": "https://www.aave.com/docs/resources/glossary",
      "locator": "APY; Borrow Cap; Credit Delegation; Debt Ceiling",
      "note": "Protocol glossary distinguishes APY including compounding from APR and defines lending terms.",
      "version": null,
      "checkedAt": "2026-10-02T17:58:05.650Z",
      "contentSha256": "d187d006c1343e0a48ba293b7893216184e9a344032c74d6ccb2900e96fd23f5",
      "recordId": "source-8847a72e1c4b461f"
    },
    {
      "id": "aave-pool",
      "label": "Pool",
      "publisher": "Aave",
      "url": "https://aave.com/docs/aave-v3/smart-contracts/pool",
      "locator": "supply; withdraw; borrow; liquidationCall",
      "note": "Collateralization, available liquidity and liquidation operations.",
      "version": "Aave V3 documentation",
      "checkedAt": "2026-10-02T17:03:44.834Z",
      "contentSha256": "73645ef223ef64419c7301794cfc4089bc79b6bfce71373b0125fd5e9a78f1b2",
      "recordId": "source-b35859a766315ce4"
    }
  ],
  "related": {
    "articles": [
      "lending-supply-caps",
      "loan-to-value-vs-liquidation-threshold",
      "utilization-and-borrowing-rates"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and independent automated verification."
    }
  ],
  "citation": "Degrees of Satoshi editorial project. “Borrow caps: limiting debt without guaranteeing liquidity.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/borrow-caps/"
}