Borrow Amount
Understand how much you can borrow
Users' ability to borrow will vary according to the usersβ deposits and the borrowing assetβs collateral requirements.
Borrow Capacity
Usersβ borrow capacity is a directional indicator, factoring in the value of their assets, their collateral factor, and outstanding liabilities.
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.
where:
Borrow Factor = factor between 0 and 1 applied to users' liabilities
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