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Borrow Amount

Understand how much you can borrow
Users' ability to borrow will vary according to the users’ deposits and the borrowing asset’s collateral requirements.

Borrow Capacity

Users’ borrow capacity is a directional indicator, factoring in the value of their assets, their collateral factor, and outstanding liabilities.
BorrowCapacity=(∑i=1nTokenValue∗CollateralFactor)−RiskAdjustedLiabilitiesBorrow Capacity = (\displaystyle\sum_{i=1}^n{Token Value} * {Collateral Factor})-Risk AdjustedLiabilities
where:
  • Collateral Factor = similar to LTV ratio, it is a discount factor applied to a user's collateral to determine the maximum borrowing possible. Collateral Factor differs with each asset type pledges as collateral
  • Risk-adjusted Liabilities = the risk-adjusted value of a user's outstanding liabilities, calculated by dividing the market value of liabilities by the Borrow Factor

Borrow Limit

While Borrow Capacity is a general gauge for how much more a user could borrow. Borrow Limit pinpoints the actual amount a user could borrow on a targeted asset.
BorrowLimit=BorrowCapacity∗BorrowFactor Borrow Limit= Borrow Capacity*Borrow Factor
where:
  • Borrow Factor = factor between 0 and 1 applied to users' liabilities
To view the Collateral and Borrow Factors , refer to Asset Parameters.
To view your Borrow Limit, first select the asset you wish to borrow and then use the borrow pop-up.