This work investigates the closed-loop operation of microelectromechanical oscillators in the presence of both cubic (Duffing) nonlinearities and parametric amplification. We present a theoretical model for this system that enables us to predict oscillation amplitude and instability and experimentally verify it using a silicon disk resonator with a quality factor (Q) of 85 000 and a natural frequency of 251 kHz. We determine that, contrary to previous understanding gained from analyzing the open-loop system, the presence of cubic nonlinearities does not limit the maximum stable oscillation amplitude if the resonator is operated in a closed loop. In addition, the stability and amplitude behavior predicted by our theoretical model are independent of the presence or severity of cubic nonlinearities, or on drive amplitude.