Loan To Value (LTV)

LTV is the fraction of the dollar value of collateral that users can use to borrow.

An 80% LTV means that 100 USD worth of collateral can be used to borrow max 80 USD worth of loan.

Liquidation Threshold

The ratio of the borrow amount to the value of the collateral at which users are liable to liquidation is known as the liquidation threshold.

A 75% liquidation threshold indicates that the position is under-collateralized and may be liquidated if the value exceeds 75% of the collateral.

Specifically, say that a user deposit 100 USD worth of APT and borrow 70 USD worth of assets, according to the current liquidation threshold of 75%, the user is subject to liquidation if the value of the assets that they borrow has increased to 75 USD.

For each account, the liquidation threshold is calculated as the weighted average of the liquidation thresholds of the collateral assets and their value.

Liquidation Bonus

Liquidation Bonus is the extra amount of collateral that the liquidator will get for taking the risk of liquidating the users.

Flash Loan Fee

The fee percentage that is charged for the flash loan.

For each account users opened, it has the following parameters

Total Borrowing Power

Borrowing Power is the total value of assets you are able to borrow with your current deposit (in USD).

Available Borrowing Power

Available borrowing power is the total borrowing power subtracts the risk adjusted borrowing value

Liquidation Borrow Value

Your account's total risk-adjusted borrowing value at which it is susceptible to liquidation

Risk Factor

Your account is vulnerable to liquidation when the risk level surpasses 100%.

Last updated