> ## Documentation Index
> Fetch the complete documentation index at: https://developers.circle.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Limits and risk ratings

> Understand risk tiers, transaction limits, and how risk ratings affect account capabilities

Digital Asset Accounts assigns risk ratings to each end-customer
[account](/digital-asset-accounts/concepts/account-structure) based on the
verified business profile. These ratings determine transaction limits and
capabilities.

## Risk tiers

Circle assigns one of four risk tiers to each end-customer account:

| Tier | Label       | Description                                                                      |
| ---- | ----------- | -------------------------------------------------------------------------------- |
| L    | Low         | Fully verified entities with established operating history and low-risk profiles |
| M    | Medium      | Verified entities with standard risk profiles                                    |
| MH   | Medium-High | Entities requiring enhanced monitoring due to business type or jurisdiction      |
| H    | High        | Entities with elevated risk factors subject to stricter limits and review        |

Risk tiers are assigned during KYB verification as part of Circle's
[compliance obligations](/digital-asset-accounts/concepts/custody-model).
Factors include:

* Business type and industry
* Operating jurisdiction
* Ownership structure
* Transaction volume expectations

## Transaction limits

Each risk tier has associated limits that control the maximum values for
different transaction types. Limits apply at multiple levels:

### Per-transaction limits

The maximum amount allowed for a single transaction. These limits vary by
transaction type:

| Transaction type  | Description                                     |
| ----------------- | ----------------------------------------------- |
| Wire deposit      | Maximum fiat amount per wire deposit            |
| Wire withdrawal   | Maximum fiat amount per wire withdrawal         |
| Crypto transfer   | Maximum stablecoin amount per outbound transfer |
| Internal transfer | Maximum stablecoin amount per internal movement |

Specific limit values are defined in your program agreement and vary by risk
tier. Query the account's limits through the API to retrieve the current values
for each transaction type.

### Rolling limits

Cumulative limits over a rolling time period. The applicable periods (such as
daily, weekly, or monthly) are program-specific and vary by risk tier.

### Balance limits

The maximum stablecoin balance that an account can hold at any point. If a
deposit or transfer would cause the balance to exceed this limit, the
transaction is rejected.

## How ratings change

Risk ratings can change over time based on:

* **Periodic reviews**: Circle periodically reviews account profiles and may
  adjust risk ratings based on updated information
* **Transaction patterns**: Unusual transaction patterns may trigger a review
  that results in a rating change
* **Updated business information**: Changes to the business profile, such as
  expansion to new jurisdictions, may affect the rating

<Note>
  Risk rating changes are managed by Circle's compliance team. Distributors cannot
  directly modify the risk rating of an end-customer account.
</Note>

## Checking limits

The API exposes current limits for each account through
`GET /v1/accounts/{accountId}/limits`. Query this endpoint before initiating
transactions to confirm the operation falls in the account's current limits. If
a transaction exceeds a limit, the API rejects the request with a `422` error.
See the
[Digital Asset Accounts API reference](/api-reference/digital-asset-accounts/all/get-account)
for endpoint details.