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Protocol parameters

This page lists the live parameter values for the current Trustless Bitcoin Vault (TBV) public testnet release.

Participant cheat sheet

Use these values while planning a public-testnet run:

What you are checkingCurrent value
Minimum vault size0.01 BTC
Maximum vault size0.4 BTC
Maximum BTC per position0.4 BTC
Maximum vaults per position10
BTC confirmations before setup can complete12 signet blocks
Peg-in ACK timeout~24 hours
Activation timeout~48 hours
Refund timelock3 days
Redemption challenge window~3 days
vaultBTC collateral factor78%
Liquidation thresholdHealth factor below 1.0

Vault and position size limits

The public testnet enforces conservative limits on individual vaults, positions, and total application exposure. These limits apply on the current public testnet release and are expected to grow as the protocol matures.

ParameterValueDescription
minimumPegInAmount0.01 BTCMinimum BTC accepted for a single vault
maxPegInAmount0.4 BTCMaximum BTC accepted for a single vault
maxPositionBTC0.4 BTCMaximum total BTC across all vaults in one position
maxVaultsPerPosition10Maximum number of vaults in one position
maxUserReservesLimit4Maximum number of distinct reserves (collateral + borrowed) a position can use
maxHtlcOutputCount10Maximum HTLC outputs in a batched Pre-PegIn transaction (enables multi-vault peg-in in one Bitcoin tx)

Application caps (CapPolicy)

Per-application and per-address BTC exposure limits enforced by the CapPolicy contract at vault activation. These Testnet limits will grow as the protocol matures.

ParameterValueDescription
totalCapBTC (Aave app)10 BTCMaximum total BTC across all users for the Aave v4 application
perAddressCapBTC (Aave app)0.4 BTCMaximum BTC per address for the Aave v4 application

Peg-in timing

Two distinct timeouts govern the peg-in flow. The activation timeout always exceeds the ACK timeout so the depositor has a window to reveal the activation secret after off-chain setup completes.

ParameterValueDescription
minPrepeginDepth12 BTC blocks (signet)Bitcoin confirmations required before ACK signers will sign the Pre-PegIn.
pegInAckTimeout7200 Ethereum blocks (~24 hours)Window for all required ACKs to be submitted (off-chain setup completion). If exceeded, the vault expires and the peg-in fee is refunded.
pegInActivationTimeout14400 Ethereum blocks (~48 hours)Window from vault creation for the depositor to call activateVaultWithSecret. Must exceed pegInAckTimeout. If exceeded, the depositor can refund via the Pre-PegIn refund leaf.
tRefund3 days (BTC blocks)Atomic-swap Pre-PegIn refund hash timelock. After this elapses, the depositor can sign the refund path on Bitcoin to reclaim the BTC if peg-in stalled.

Redemption timelocks

Timelock parameters governing the claim, assert, and challenge windows during peg-out. The total wait from a successful claim to BTC payout is approximately three days, dominated by the challenge window.

ParameterValueDescription
timelockAssert432 BTC blocks (~3 days)Challenge window: time for any Universal Challenger (or Application Vault Keeper) to broadcast a ChallengeAssert after the claim is posted.
timelockChallengeAssert108 BTC blocks (~18 hours)Claimer's disprove window: time for the claimer to broadcast a WronglyChallenged transaction after a challenge is raised.

Liquidation parameters

Thresholds used by the Aave v4 integration to determine when a position is liquidatable and how much collateral is seized to restore the health factor.

ParameterValueDescription
collateralFactor (vaultBTC)7800 BPS (78%)Fraction of vaultBTC collateral value counted toward borrowing capacity
liquidationThreshold10000 BPS (1.0)Health factor below which a position becomes liquidatable
targetHealthFactor1.24e18 WAD (1.24)Health factor the liquidation process aims to restore. With this target, partial-position liquidation seizes roughly 62% of total BTC value when a position becomes liquidatable.
maxLiquidationBonus11000 BPS (10% bonus)Maximum discount on collateral granted to the liquidator. On the current public-testnet configuration (healthFactorForMaxBonus ≈ 1.0), this max bonus applies immediately when a position becomes liquidatable; no Dutch-auction scaling.
healthFactorForMaxBonus~1.0 WADHealth factor at or below which the max bonus applies
liquidationBonusFactor10000 BPSFactor for minimum bonus calculation (max bonus applies immediately on liquidation)
liquidationFee0 BPSStructurally zero for vaultBTC collateral. UTXOs cannot be partially extracted, so an Aave-style liquidation fee cannot be applied.

Off-chain coordination parameters

ParameterValueDescription
babeTotalInstances307Total garbled circuit instances generated in the BABE cut-and-choose protocol at peg-in
babeInstancesToFinalize6GC instances retained after the cut-and-choose; used during dispute resolution. The remaining 301 are revealed to verify honest construction.
proverCircuitVersion1SP1 prover program (ELF) version; monotonic.
feeRate2 sat/vBBitcoin transaction fee rate used by the protocol on the public testnet. Mainnet values would be higher.
minPeginFeeRate20 sat/vBMinimum PegIn transaction fee rate enforced by ACK signers.

Security Council

ParameterValueDescription
councilQuorum3 of 5 (public testnet)Required signatures for council action (such as CouncilNoPayout emergency intervention).

Vault Provider commission

Each Vault Provider sets its own commission per vault, taken in BTC from the redemption payout. The commission rate is fixed in the pre-signed Payout transactions at vault creation and cannot change for that vault.

vaultBTC token

ParameterValueDescription
nameBTC VaultOn-chain token name
symbolvaultBTCOn-chain token symbol
decimals8Matches Bitcoin's satoshi precision (1 vaultBTC = 1 BTC = 100,000,000 satoshis)
Transfer restrictionsRestricted to the Aave v4 integrationvaultBTC is not freely transferable. It exists only as an internal accounting unit within the Aave Adapter.
  • Setup: wallets, networks, faucets, and the Aave v4 Lending Dashboard URL.
  • Create a vault: how vault caps and timing apply during peg-in.
  • Liquidation risk: how liquidation parameters affect a participant position.