Protocol Parameters
Loan-To-Value (LTV) Ratios
Please reference Supported Collateral List.
Borrow Rates
Please reference Lending Pools List.
Leverage Factor
The leverage factor for borrowing margin liquidity is currently set at 5x. This is applied on the protocol level.
Leverage Liquidity Example:
A Trader deposits $10,000 worth of trading collateral.
At 80% LTV and 5x leverage factor, the leverage liquidity is $10,000 * 80% * 5 = $40,000.
The max margin liquidity that the Trader can borrow from the Lending Pools for leveraged trading is $40,000.
Liquidation Ratio
The liquidation ratio for trading collateral is currently set at 88%.
Liquidation Example:
A Trader deposits $10,000 worth of trading collateral.
The max trading loss the Trader can tolerate is $10,000 * 88% = $8,800.
The trading collateral is liquidated in full by the protocol to repay Lenders once trading losses exceed $8,800.
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