# Aave proposes isolating 15 E-Modes and de-isolating three

> Fifteen categories would exclude outside collateral from new borrowing power; three categories would restore outside collateral's base-market LTV.

- URL: https://riadefi.com/on-chain/2026-09-11-aave-v3-7-emode-isolation-rule/
- Type: Economic change
- Stage: Proposed
- Evidence: confirmed
- Materiality: watch
- Event date: 2026-09-11
- Version: 1, published 2026-09-15 (first published 2026-09-15)
- Follow-up: 2026-09-18
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

## What happened

LlamaRisk proposed a common isolation rule: isolate E-Modes permitting an asset to be borrowed when its general borrowing market is disabled.

## What changed

Fifteen categories would exclude outside collateral from new borrowing power; three categories would restore outside collateral's base-market LTV.

## What did not change

The proposal says isolation preserves liquidation thresholds and existing health factors. No approved payload or executed parameter change is established.

## Confirmed

- The specification identifies 15 categories for isolation and three for de-isolation.
- The proposed restriction affects new borrowing power and position restructuring.
- The ARFC describes Snapshot and an AIP as subsequent steps.

## Still open

- Final approval, payload sequencing and execution.
- Which actual positions would face borrowing or collateral-withdrawal constraints at execution.

## What it means for an advisor

- Monitor the affected E-Mode categories against the aave-v3 collateral and exit documentation.
- Before execution, distinguish reduced borrowing capacity from liquidation risk and document restructuring constraints for any relevant exposure.

## Sources

1. [[ARFC] Unified Handling of the Isolated Flag in Aave V3.7 E-Modes](https://governance.aave.com/t/arfc-unified-handling-of-the-isolated-flag-in-aave-v3-7-e-modes/25621) · Aave governance / LlamaRisk · 2026-09-11


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.