# Benefits

The isolated market model offers several key benefits:

1. No Rehypothecation: When users deposit collateral, it remains theirs. Granite never lends it out to other users, ensuring that assets are always available when needed. This eliminates the liquidity risk that borrowers face in traditional DeFi models where their collateral might be lent out without their knowledge.
2. Independent Liquidity: Each isolated market does not share liquidity with others, allowing for tailored risk profiles. This independence enables more precise risk management and increased flexibility in market parameters.
3. Customizable Parameters: Each market has its own set of risk parameters, including its own Max and Liquidation LTVs, Interest Rate Model, and Oracle. This customization allows Granite to provide a more secure and user-friendly experience.


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