Set Target Risk Tolerance Ratio
AI summary
This proposal asks Spark DAO to adopt a 90% 'Risk Tolerance Ratio' for its capital allocation activities. This ratio, defined by the broader Sky ecosystem, compares Spark's 'Required Risk Capital' (RRC) to its 'Total Risk Capital' (TRC). RRC is the capital Spark needs to cover potential losses from its investments, while TRC is the capital it actually holds. A 90% ratio means Spark aims to keep its TRC at least 10% higher than its RRC, creating a buffer.
If this proposal passes, Spark will formally commit to maintaining a specific capital buffer, reducing the risk of penalties from the Sky ecosystem for insufficient capital. This could lead to more stable operations and better protection for USDS holders, but might also slightly reduce the capital efficiency of Spark's investments as it holds more capital than strictly required.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Set Target Risk Tolerance Ratio - October 6, 2025
Spark's Operational Facilitator has placed a proposal into the voting system on behalf of nested contributor Phoenix Labs.
Review
The Spark community can hereby express support or opposition to the following changes, as described by the author of the proposal:
Summary
This proposal is submitted by Phoenix Labs in its role as a nested contributor, as defined in section [A.AG1.2.2.P6.2.1.2.1.1.1](https://sky-atlas.powerhouse.io/A.AG1.2.2.P6.2.1.2.1.1.1_Root_Edit_Proposal_Submission_Requirements_Exception_For_Nested_Contributor…