Understand how much you can borrow
Users' ability to borrow will vary according to the users’ deposits and the borrowing asset’s collateral requirements.
Users’ borrow capacity is a directional indicator, factoring in the value of their assets, their collateral factor, and outstanding liabilities.
- 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
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.
- Borrow Factor = factor between 0 and 1 applied to users' liabilities
To view your Borrow Limit, first select the asset you wish to borrow and then use the borrow pop-up.