Proposal

The following suggestion is proposed to optimize for risk management for Karura.

• Decrease Debt Ceiling of KSM from 25M to 10M
• Decrease Debt Ceiling of LKSM from 5M to 2M
• Decrease Debt Ceiling of KAR from 3M to 1M

Risk parameters are best adjusted according to market conditions to balance insolvencies, liquidations, and capital efficiency. A lower debt ceiling helps mitigate the risk associated with excessive debt exposure and enable the protocol to remain solvent and resilient in volatile market conditions.