# I. Module Mechanism Explanation

After the EM module calculates the daily issuance amount, MCL will determine whether it remains within the "mintable cap" based on the Treasury's current net assets and preset minting conditions:

```
Max Mintable Supply = Treasury Assets / Backing per ARK
```

| **Element**     | **Definition**                                           |
| --------------- | -------------------------------------------------------- |
| Treasury Assets | Treasury net assets - A reserve that can support minting |
| Backing per ARK | Required backing per ARK - Default is 1.0 U              |

* If post-issuance remains below Max Mintable Supply → Approve and execute minting
* If approaching or exceeding the limit → Suspend or restrict, forcibly reducing the daily issuance amount


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