# Asset Liquidity

Morpho introduces “idle markets” that allow Gauntlet, as a curator, to ensure that some amount of liquidity is always available for withdrawals.

We constantly monitor overall market liquidity and leverage and rebalance our vault supply allocation in accordance with the solution to the following optimization problem:

Determine a supply allocation that maximizes vault APY subject to the following constraints:

* Expected liquidations under specified price and liquidity drawdowns should remain below a predetermined tolerance level based on current market conditions.
* Resulting borrow and supply rates competitively must stay within a predetermined tolerance of relevant market rates.
* Market utilization must stay between 88-92%.
* Liquidity available for immediate withdrawals must be greater than a predetermined withdrawal amount (e.g., 10% of vault deposits available for immediate withdrawal at all times).


---

# 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/morpho-vaults/vault-curation-considerations-a-deeper-dive/asset-liquidity.md?ask=<question>
```

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.
