# Governance and Roles

> Spout separates who can change the rules from who runs the routine work. Some rules cannot be changed by any role without a program upgrade:

Canonical: https://spout.finance/docs/governance/

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Spout separates who can change the rules from who runs the routine work.

| Role | Held by | Can do | Cannot do |
| --- | --- | --- | --- |
| Governance | A multisig: a wallet that needs several signers to approve any action | Add assets; set each asset's LTV, threshold, penalty and limits; set tranche and fee parameters within program limits; replace the operational key; trigger emergency shutdown; upgrade the programs | Act on a single signer's say |
| Operations | Spout's operational key, used by the keeper | Lock and unlock pools for cycles; record premium, capped by governance for any one contract; settle cycles and assignments; run liquidations; set pauses; enable or disable an asset for new activity; update the Treasury bill rate, capped at 6% a year | Change risk settings; change fees; upgrade programs |
| Users | You | Act on your own positions and deposits | Act on anyone else's |

## Rules fixed in the program

Some rules cannot be changed by any role without a program upgrade:

- The maximum LTV can never be set above 50%.
- A liquidation penalty must equal the gap between the asset's threshold and its maximum LTV.

- The protocol fee is split evenly between the Insurance Fund and the treasury.
- The Insurance Fund can only be spent by the loss rules.