š”ļøParameters
Collateral Factor (Loan-To-Value Ratio)
The maximum amount a user can be borrow with a specific collateral. For example, the LTV for Juno is 60%, the maximum that can be borrowed is $60 for each $100 in Juno collateral.
The maximum LTV is calculated as the weighted average of collateral assets multiplied by each LTV:
And
Liquidation Threshold
Liquidation Threshold is the percentage by which a position is defined as collateral deficient. For instance, Liquidation Threshold of 80% means that if the value rises over 80% of the collateral, the position is collateral deficient. Then the asset might be liquidated.
Liquidation Threshold is calculated as the weighted average of collateral assets multiplied by each Liquidation Threshold:
Reserve Factor
Reserve Factor allocates a share of the protocol's interests to the collector contract as a reserve for the ecosystem.
It is adjusted based on the risks of the asset. For example, stablecoins are assumed as less risky assets with low reserve factors while volatile assets are assumed to have more risks with higher factors.
For example: a $100K borrow of Juno for a year, at 10% borrow APY and Reserve Factor is 15%, would result in $10 000 Ć 15% = $1 500 reserve fees for the protocol upon repayment.
Liquidation Bonus (Discount)
This is a bonus on the asset price paid to a liquidator when the liquidator purchases the collateral asset that has passed Liquidation Threshold.
Close Factor
The maximum amount that can be liquidated in a single transaction. For example, a close factor of 50% means that a maximum of 50% of a liquidatable account's borrow can be repaid in a single liquidation transaction.
Whitelisted Collateral
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