# HIP-19: Temporarily reduce C-Ratio to 350%

<figure><img src="/files/0zS7kg0QvPqJmCLOrTcf" alt=""><figcaption></figcaption></figure>

**Type:** Horizon Improvement Proposal&#x20;

**Date:** Aug 14th, 2024&#x20;

**Status:** Completed

**Specification**\
Set the target C-Ratio to 350% and adjust Preset Strategies to:

* Conservative: 1000% → 850%
* Neutral: 800% → 650%
* Aggressive: 600% → 350%

**Motivation**\
Lowering the Target C-Ratio to 350% will provide immediate relief to stakers by making it easier for them to claim weekly rewards without the need to burn zUSD or self-liquidate.\
\
HZN stakers play a key role in the Horizon Protocol Ecosystem by providing collateral to the Global zAsset Portfolio and actively maintaining a healthy collateral ratio. Additionally, stakers provide liquidity to the zUSD and zBNB on/off ramps, earning additional yield. This temporary measure is intended to alleviate the current pressure on stakers, who may be struggling to maintain higher C-Ratio, while maintaining the liquidity of the zUSD and zBNB on/off ramps.&#x20;

By temporarily decreasing the Target C-Ratio, stakers will be able to access the weekly rewards incentive while having more flexibility to contribute to the total zAsset liquidity.&#x20;

**Potential Risks**\
The implementation of this HIP might come with some risks, including the following:

* For stakers, it is easier to reach the 160% liquidation ratio from 350% than from the previous 600%. So, should they decide to use an aggressive strategy, stakers will have to be vigilant in managing their debt. To mitigate this risk, stakers have a 12h grace period to fix their wallet should they hit the liquidation ratio. Stakers can always choose to use a Moderate or Conservative strategy, and use external notification services for price alerts.&#x20;

**Considerations**\
Additional thoughts we should take into consideration:

* This is a temporary measure, and the impact will be closely monitored to determine the appropriate time to revert to the previous C-Ratio or adjust it further as needed.


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