Risk Parameters
Parameters to manage liquidation risk
Concepts
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 |
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