What is it?
A borrow cap is a ceiling on how much of an asset can be borrowed from that reserve. It is a safety brake on demand.
Why does it matter?
A reserve jammed against its borrow cap can show strong demand without more borrowing being allowed. Utilization may stop rising even if rates are attractive.
Example
GHO or a stablecoin hits its borrow cap. New borrowers wait. Existing debt still accrues. Watch Governance and config events for cap changes.
Where can I find it?
Asset detail Reserve configuration, Borrow cap. Governance and Live Activity config_change events when the configurator logs an update.