cases?
Does fraxlend Amo stay in pools when util spikes and risk capital loss? Or will it be withdrawn at some point if it looks risky?
It's governance that sets the cap of the AMO, there has been votes for each asset. If you want to lower the ceiling and lower protocol exposure, just start a FIP to lower the lending cap from the current one. You can view the caps at https://facts.frax.finance/fraxlend/amo
So whatever the cap is for each asset based on the vote, the amo deposits that full amount and doesn't withdraw it?
No filling it to the cap is then at the core dev's discretion but we make a best effort to fill the cap. If you want less exposure, then you should rally the community to vote on a new FIP with lower cap on specific assets.
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