# Isolated E-Mode ## **Overview** Isolation Mode enables the safe addition of new or highly volatile assets to the protocol, preventing any potential risks from spreading system-wide. Assets listed in this mode can serve as collateral exclusively for borrowing a predefined set of assets—usually stablecoins—subject to a fixed debt ceiling. This approach effectively isolates risk while broadening the range of supported assets. ## **Why is it important** When a user chooses to enable an Isolated asset as a collateral * Only specifically permitted assets can be borrowed. * Borrowing is capped through a conservative supply cap. * No additional assets can be used as a collateral. This mechanism safeguards the protocol by restricting the total debt against higher-risk assets, thereby minimizing potential systemic impact.
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