For the complete documentation index, see llms.txt. This page is also available as Markdown.
Borrowing Capacity
The sum of weighted collateral values determined by various Collateral Factors represents the maximum borrowing capacity.
Assume that the maximum borrowing amount (in USD) of a user is Vππ which is calculated by the following formula.
Where:
Vdi: USD value of deposit asset i
DFj: Deposit factor of asset i
Vbj: USD value of borrowed asset j
BFj: Borrow factor of asset j
Based on Patronus' risk control regulations (embodied in the Deposit factor and Borrow factor), the volatility risk of the pre-borrowed token needs to be considered when specifying the amount that can be borrowed in a particular token.
Therefore, the formula for calculating ππ₯ assuming that the user has a borrowable amount (in USD) in a particular token is as follows.
