Risk Parameters
Parameters to manage liquidation risk
Last updated
Parameters to manage liquidation risk
Last updated
Loan to Value - Maximum amount of assets that can be borrowed with a specific collateral.
Liquidation Threshold - Maximum percentage of value that can be borrowed against it.
Liquidation Bonus - Bonus received by the liquidator that covers an under-collateralization.
These values are subject to change, as the Lendfinity DAO will be able to make proposals to update them.
These are the Risk parameters for each asset:
| Asset | Base LTV | Liquidation Threshold | Liquidation Bonus | Reserve Factor | Strategy |
|---|---|---|---|---|---|
WBFT
50%
75%
5%
10%
Volatile
ICP
50%
75%
5%
10%
Volatile
ckBTC
50%
75%
5%
10%
Volatile
ckUSDT
50%
75%
5%
10%
Stable #1
ckUSDC
50%
75%
5%
10%
Stable #1