# Isolated Markets

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Isolated markets are **specialized lending markets** designed to securely introduce new or higher-risk assets without impacting the overall stability of the protocol. They’re ideal for users looking to supply to non-traditional assets or those with higher volatility, while maintaining a safe and reliable ecosystem.

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**How They Work:**

* Each isolated market operates **independently** of the main lending market.
* Risks (e.g., **price volatility** or **liquidity concerns**) are confined to the specific market.
* Any issues in one market (defaults, liquidations) **do not affect** the protocol's core assets or broader markets.
* When supplying to an isolated market, the **position becomes isolated**, meaning you can't supply to other markets with that position, and borrow only from selected markets.

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**Use Case Example:**

* A new or experimental token is added as an isolated market.
* Users can safely interact with this token while the main protocol remains **insulated from unforeseen risks**.

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**Benefits of Isolated Markets:**

* Supply limits are **tailored** to the specific characteristics of the assets in the market.
* **Flexibility** for users to explore emerging or niche assets.
* **Robust risk management** ensures security and reliability.
