# Risk parameters ## **Loan To Value** The maximum amount that can be borrowed for a specific mortgage is determined by the Loan To Value (LTV) ratio. For example, if the LTV is 75%, borrowers will be allowed to borrow 0.75 ETH worth of corresponding currency for every 1 ETH worth of collateral. For a wallet, the maximum LTV is calculated as the weighted average of LTVs of collateral assets and their value. In particular, for a wallet that deposits the collateral assets that are worth in dollars $$C\_1, \dots ,C\_n$$, and their LTVs corresponding to $$LTV\_1, \dots , LTV\_n$$, maximum LTV is $$ \frac{C\_1 \times LTV\_1 + \cdots + C\_n \times LTV\_n }{C\_1+\cdots+C\_n} $$ ## **Liquidation Threshold** The liquidation threshold is the percentage at which a position is defined as undercollateralised. For example, a Liquidation threshold of 80% means that if the value rises above 80% of the collateral, the position is undercollateralised and could be liquidated. The difference between the Loan To Value and the Liquidation Threshold is a safety cushion for borrowers. For each wallet, the liquidation threshold is calculated as the weighted average of the liquidation thresholds of the collateral assets and their value. In particular, for a wallet that deposits the collateral assets that are worth in dollars $$C\_1, \dots ,C\_n$$, and their liquidation threshold, respectively, $$LT\_1, \dots, LT\_n$$ , the liquidation thresholds of wallet is $$ \frac{C\_1 \times LT\_1 + \cdots + C\_n \times LT\_n}{C\_1 + \cdots + C\_n} $$ ## **Health Factor** For a wallet, these risk parameters enable the calculation of the health factor: $$ H\_f = \frac{C\_1 \times LT\_1+ \cdots + C\_n \times LT\_n}{B} $$ where $$B$$ is total borrows (in dollars)**,** $$C\_1,\dots,C\_n$$ is the values (in dollars) of collateral assets, and $$LT\_1, \dots, LT\_n$$ is their liquidation threshold, respectively. When $$H\_f < 1$$ the loan may be liquidated to maintain solvency. ## Liquidation penalty Liquidation penalty is a bonus applied to the price of collateral assets purchased by liquidators as part of the liquidation of a loan that has reached the liquidation threshold. ## **Reserve Factor** The reserve factor allocates a share of the protocol's interests to a collector contract as reserve for the ecosystem. ## Risk Parameters ### BSC Lending Pool
ReserveCollateralLTVThresholdBonusReserve Factor
ReserveCollateralLTVThresholdBonusReserve Factor
DAIYes77%80%5%15%
USDCYes80%85%5%15%
USDTYes75%80%5%15%
ETHYes82,5%85%5%15%
BNBYes75%80%5%15%
BTCBYes70%75%9%20%
BUSDYes75%80%5%15%
AAVEYes70%75%5%15%
ADAYes70%75%5%15%
CAKEYes70%75%5%20%
XRPYes70%75%5%20%
DOGEYes55%60%8%20%
DOTYes70%75%5%20%
XVS Yes60%65%5%20%
FTM Yes75%80%5%20%
### **FTM** Lending Pool
ReserveCollateralLTVThresholdBonusReserve Factor
ReserveCollateralLTVThresholdBonusReserve Factor
DAIYes75%80%5%10%
USDCYes80%85%5%10%
USDTYes75%80%5%10%
ETHYes80%82.5%5%10%
BTCYes70%75%9%20%
FTM Yes75%80%5%20%
### ETH Lending Pool
ReserveCollateralLTVThresholdBonusReserve Factor
ReserveCollateralLTVThresholdBonusReserve Factor
DAIYes75%80%5%20%
USDCYes80%85%5%20%
USDTYes75%80%5%20%
ETHYes80%82.5%5%20%
BTCYes70%75%9%20%
## **Price Discovery** The frequency of price updates is determined by the liquidation strategy. We use a margin method, which means that prices are refreshed whenever the deviation exceeds a certain threshold. For the price feed, we rely on Chainlink's decentralized oracles.
NameSymbolPrice updated everyAddress
NameSymbolPrice updated everyAddress
Binance USDBUSD0.5%https://data.chain.link/bsc/mainnet/crypto-usd/busd-usd
DAIDAI2%https://feeds.chain.link/dai-usd
USDCUSDC0.1%https://data.chain.link/bsc/mainnet/crypto-usd/usdc-usd
TetherUSDT0.1%https://data.chain.link/bsc/mainnet/crypto-usd/usdt-usd
EthereumETH0.1%https://data.chain.link/bsc/mainnet/crypto-usd/eth-usd
Binance coinBNB1%https://data.chain.link/bsc/mainnet/crypto-usd/bnb-usd
BTCBBTCB0.1%https://data.chain.link/bsc/mainnet/crypto-usd/btc-usd
AAVEAAVE0.2%https://data.chain.link/bsc/mainnet/crypto-usd/aave-usd
ADAADA1%https://feeds.chain.link/ada-usd
CAKECAKE0.2%
XRPXRP 0.2%
DOGEDOGE0.2%
DOT DOT0.2%https\://data.chain.link/bsc/mainnet/crypto-usd/dot-usd
XVSXVS0.3%
FTMFTM0.5%\
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