Bank States

The Group administrator can configure Banks into several operational states that restrict or modify their behavior.

Isolated

Banks in the Isolated risk tier have an asset weight of zero: their deposits are worthless as collateral. However, Isolated assets can still:

• Earn interest from borrowers.
• Be borrowed (their liability weights are still active).

Restriction: An Account can only borrow one Isolated asset at a time.

Isolated status is typically assigned to riskier or less liquid assets where the protocol doesn't want to accept the price risk of using them as collateral.

Reduce-Only

Banks in Reduce-Only mode can only process withdrawals and repayments. New deposits and borrows are disabled.

• Liquidations continue to function normally.
• All risk parameters and interest rates remain active.
• Existing positions continue to accrue interest.

Reduce-Only is typically used when a Bank is being sunset. Users should withdraw from Reduce-Only Banks as soon as possible, as the administrator may take more drastic measures (such as reducing asset weights to zero) to deleverage remaining positions.

Paused

Banks in Paused mode cannot process any user operations: no deposits, withdrawals, borrows, or repayments.

This state is usually reserved for defunct Banks that are empty.

Globally Paused

The Global Fee State Admin (which controls program-level fees) has the ability to pause the entire protocol: all Groups and Banks simultaneously.

• Maximum pause duration: 30 minutes per event.
• Maximum frequency: twice per day.
• During a global pause, all financial operations across all Groups and Banks are suspended.