Isolated Markets

Isolated Markets on NAVI allow users to lend, borrow, and manage positions with greater flexibility while controlling risk exposure.

By separating assets into different markets, NAVI enables asset diversification and risk management, so that positions in one market do not impact positions in another.

Key Benefits

• Risk Isolation: Positions in one market are isolated from others. Liquidation or changes in one market won’t affect your positions in other markets.

• Asset Diversification: Users can participate in multiple markets simultaneously, spreading exposure across different assets.

• Clear Overview: On the Lending page, you can view all markets and their available assets at a glance.

How It Works

• Each isolated market groups a set of assets together.

• Positions within one market are independent of positions in other markets in terms of risk.

• Each asset in a market can have its own parameters, including:

  • Loan-to-Value (LTV)

  • Liquidation threshold

  • Interest rate curve

• Users can open, manage, and close positions within a market without affecting positions in other markets.

• Markets can be monitored directly on the Lending page, showing assets, utilization, and health factors per market.

What Are the Risks?

Isolated markets reduce cross-market risk but still carry standard lending protocol risks, including but not limited to:

• Liquidation risk

• Oracle inaccuracies

• Utilization and liquidity risk