# Vault Risk Categories ### **Prime Vaults** Prime Vaults offer conservative, low-risk yields to suppliers. These Vaults allocate supply to maximize risk-adjusted yield while targeting minimal risk of insolvent debt even under extreme market conditions. Prime Vaults will allocate to markets that meet the following criteria: * A blend of super high liquidity blue chip collateral. * High price correlation between supply and collateral tokens. Some markets may be considered that do not meet these exacting criteria; however, where this is the case, the supply caps and LLTV ratios will be set conservatively. ### **Balanced Vaults** Balanced Vaults target higher risk-adjusted yield, allocating to a blend of large and lower cap collateralized markets while ensuring exposure to any one asset remains within acceptable bounds. Collateral Selection is based on the following factors: * Active management of vault supply to market supply ratios to ensure availability of withdrawal liquidity. * Sufficient liquidity and slippage to perform healthy liquidations in severe market conditions. ### Frontier Vaults Frontier Vaults target the highest risk-optimized yields across Kamino Markets by allocating to higher-volatility markets in exchange for the potential for greater supplier returns. Like all Gauntlet-curated vaults, Frontier Vaults adhere to our collateral evaluation and due diligence requirements that apply across all our vault risk categories: * **Due diligence:** All underlying markets must pass Gauntlet’s due diligence process. * **Audits:** Certified audits from top industry auditors are required before vault inclusion. * **Active curation:** Regular risk parameter reviews ensure vaults continually align with existing market conditions. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://vaultbook.gauntlet.xyz/vaults/kamino-vaults/vault-risk-categories.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.