Granite Features: Withdrawal Caps

Granite prioritizes security above all else. The mission — to make Granite the safest way to borrow against Bitcoin. As part of that goal, Granite is introducing adaptive withdrawal caps, a powerful safeguard that dramatically reduces security risks from potential exploits.

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What is a Withdrawal Cap?

Withdrawal caps limit the amount of an asset that can leave Granite over a defined rolling time window. This applies to every possible way an asset can exit the protocol, including:

• Debt Cap: the amount of an asset that can be borrowed 
• Collateral Withdrawal Cap: the amount of collateral that can leave the system (this does not affect liquidations)
• Liquidity Provider (LP) Cap: how much liquidity providers can remove

By covering every withdrawal path these caps create a defense against unknown exploit vectors, from logic bugs to oracle manipulation.

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Rolling Windows vs Daily Caps

Unlike fixed “daily” limits, Granite uses a rolling window with gradual refill. 

Here’s how rolling windows work:

Example: If the cap is set to 10% for BTC collateral withdrawals and that limit is reached, further withdrawals will be temporarily disabled. The cap will then refill linearly over the next 24 hours.

This means the protocol keeps running and withdrawals remain possible — no hard freezes — while still containing any exploit to a capped loss.

This design safeguards the system while avoiding penalizing regular users during organic high-traffic moments.

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How Do Caps Impact Borrowers and Lenders?

Withdrawal Caps protect the protocol and users by limiting the damage from an exploit - potential attackers are prevented from draining an asset since they can only access a subset of protocol capital.

“We’ve built monitoring capabilities that track caps and withdrawals in real time. If a cap is hit, the Granite guardians are instantly notified,” said Blaize Wallace, Founding Contributor of Granite. “Guardians can then pause the protocol if needed, ensuring rapid human intervention before further damage occurs.”

Caps are managed by governance and can be updated based on market conditions. Every user will be able to see the caps in action on the protocol. If the protocol is approaching or has reached the cap, an alert will show in the Dashboard.

“Withdrawal caps offer a dramatic improvement in borrower and LP security for Bitcoin DeFi users,” said Wallace.

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Conclusion

Granite is being built as the safest way for anyone to borrow against Bitcoin, and withdrawal caps help safeguard against the unknown. They join a series of features that highlight security and safety for users participating in Bitcoin DeFi, including offline position tracking, soft liquidations, and no rephypothecation.

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To learn more about how these caps are determined and implemented, please visit Granite’s Gitbooks for more information.

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Visit Granite to get started today. 

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