> For the complete documentation index, see [llms.txt](https://doc.monetrix.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doc.monetrix.xyz/monetrix-pilot/guides/risk-modes.md).

# Markets and risk modes

## Supported markets

### HYPE — Recommended

* Higher expected funding yield
* Up to 65% LTV in the current design
* Greater capital efficiency
* Recommended default market

### BTC

* Lower expected funding yield
* Lower LTV and capital efficiency
* More established and liquid market

Market availability and parameters may change when liquidity, volatility or execution conditions are unsuitable.

## How modes work

All modes keep equal spot and perpetual notional. The selected mode changes leverage, capital assigned to perpetual margin, target HF and the price buffer before rebalancing.

| Mode         | Expected APY | Target HF |     Indicative capital use | Selected-asset price increase to HF 1.10 | Profile                                                         |
| ------------ | -----------: | --------: | -------------------------: | ---------------------------------------: | --------------------------------------------------------------- |
| Conservative |        8–12% |   2.2–2.8 | 75% spot / 25% perp margin |                      Approximately +100% | Lowest yield and leverage; largest buffer                       |
| Normal       |       12–18% |   1.7–2.2 | 82% spot / 18% perp margin |                       Approximately +55% | Balanced yield, leverage and buffer                             |
| Aggressive   |       18–26% | 1.35–1.70 | 90% spot / 10% perp margin |                       Approximately +23% | Highest yield and leverage; most frequent potential rebalancing |

> Capital-use and price-move figures are indicative Pilot parameters. Production values may change according to liquidity, volatility and the Monetrix risk engine.

## HF 1.10 warning line

The percentages refer to the selected asset's price movement.

For example, in Normal HYPE mode, an approximate **HYPE price increase of 55%** may bring Health Factor to the **1.10 warning line**.

At the warning line, Monetrix triggers a rebalance or partial close to raise Health Factor toward the configured range and avoid liquidation.

Aggressive mode has a smaller buffer and may therefore rebalance more frequently.

## APY

APY varies with funding rates, execution costs, market conditions and the selected mode. It is not fixed or guaranteed.