Market Parameters
Parameter definition
Collateral Factor
the % of collateral value that can be borrowed against
for example, when collateral factor is 80%, you can borrow up to $80 against $100 collateral.
Liquidation Threshold
the % at which a position is defined as undercollateralized / liquidatable
for example, when liquidation threshold is 85%, borrowing value rising above 85% of the collateral would lead to position undercollateralized, and could be liquidated.
Reserve Factor
the % of borrow interest that goes to protocol reserve
for example, when reserve factor is 15%, every $0.15 per $1 borrow interest paid goes to protocol reserve.
Liquidation Bonus
the % of total position value that liquidator earns by conducting a liquidation action
for example, when liquidation bonus is 15%, liquidator earns extra 15% by fully repaying outstanding loan.
Parameters
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