# Borrow Market Lifecycle

This section defines the exact process followed when borrow-side parameters (e.g., LTV) must change within borrow markets.

<h4 align="center">Deployment</h4>

A market is deployed with fixed parameters:

* Collateral asset
* Loan asset
* Maximum LTV
* Liquidation threshold
* Oracle
* Interest rate model

These parameters are immutable. They cannot be modified after deployment.

The market becomes active.

***

<h4 align="center">Active Operation</h4>

Users:

* Supply liquidity
* Borrow against collateral
* Maintain positions under the original risk configuration

Vaults may allocate capital to the market.\
All positions are governed strictly by the deployed parameters.

***

<h4 align="center">Parameter Change Requirement</h4>

If risk conditions require a different LTV or liquidation threshold:

* The existing market is not edited
* No in-place modification is possible

A new market must be created.

***

<h4 align="center">New Market Deployment</h4>

A new market is deployed with the updated parameters.

The original market remains live on-chain with its original configuration.

Both markets operate independently.

***

<h4 align="center">Routing Update</h4>

The system updates capital routing:

* Frontend directs new borrow activity to the new market
* Vault allocations shift to the new market
* Incentives, if used, apply only to the new market

No new liquidity is directed to the original market.

Existing borrower positions remain unchanged.

***

<h4 align="center">Legacy Wind-Down</h4>

The original market transitions into passive status:

* Borrowers repay or refinance voluntarily
* Liquidity exits gradually
* Liquidations continue under the original rules

There are no parameter changes.

***

<h4 align="center">Archive</h4>

When utilization approaches zero:

* The market is marked legacy in documentation
* UI may be reduced
* The contract remains permanently accessible on-chain

***

<h4 align="center">Principle</h4>

Borrow parameters are immutable per market.

Parameter updates are implemented through new market deployment and capital migration.

No retroactive risk changes occur.


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