# ARC: LTV and Liquidation Threshold Levels 2021-08-26 **URL:** \ **Category:** General\ **Created:** [August 27, 2021, 5:43pm UTC](https://governance.aave.com/t/arc-ltv-and-liquidation-threshold-levels-2021-08-26/5467 "2021-08-27T17:43:27Z")\ **Posts on this page:** 1\ **Showing post:** 4
**Author:** ![inkyamze](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/inkyamze/32/811_2.png) [@inkyamze](https://governance.aave.com/u/inkyamze)\ **Post date:** [August 31, 2021, 9:54pm UTC](https://governance.aave.com/t/arc-ltv-and-liquidation-threshold-levels-2021-08-26/5467/4 "2021-08-31T21:54:45Z")
> [@pakim249](#): > > Is it possible for Gauntlet to provide a more detailed opinion on conservative, moderate, and aggressive thresholds? Is there any metric that you can provide that would reflect the added risk of adopting more aggressive thresholds? **Conservative** metrics: the models target a 15% decrease on each side of the capital efficiency (opportunity cost of capital) as well as risk metrics (some conflation of liquidations, insolvencies, and market impact) on each asset. **Moderate** metrics: target a similar risk profile to the current risk parameters with reweightings to achieve slightly better capital efficiency. **Aggressive** recommendations target a 10% increase for capital efficiency (opportunity cost of capital) with considerations for the same risk metrics (liquidations, insolvencies, and market impact) on each asset. Our models suggest there is headroom to make further updates across most Aave v2 assets. These initial changes look more at specific asset values that are suboptimal and baseline the risk appetite of the community. The [Risk Dashboard](https://governance.aave.com/t/aave-risk-dashboard-development-update/5370) currently in production will be able to provide much of that granularity in the near future. --- _[View the full topic](https://governance.aave.com/t/arc-ltv-and-liquidation-threshold-levels-2021-08-26/5467)._