# Market

### Isolated Pool

Each liquidity pool operates independently and does not interact with others, a feature referred to as "**isolated pools**." This isolation ensures that even if a specific token in one pool suffers a catastrophic event, such as a hack that renders it worthless, the impact is contained within that pool, protecting users of other pools from any fallout. This characteristic fosters a decentralized environment where liquidity pools for any token can be quickly and safely deployed.

### Supply & Borrow Asset

In the market, users can either supply liquidity to a specific pool or borrow assets from it. The types and amounts of assets that users can borrow are determined by the composition of the collateral they supply.

The system evaluates user accounts for risk and determines borrowing limits based on established risk parameters. For a detailed explanation of how risks are assessed and borrowing caps are determined, refer to the [Account Risk](/factorial-legacy/account-risk.md).


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