Patronus WIKI
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  • Technical Framework
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  • Financial Model
    • Asset Rating
    • Interest Model
    • Interest Compounding
    • Reserves and Service Charge
    • System Risk
  • Position Management
    • Collateral and Debt
    • Borrowing Capacity
    • Liquidation System
    • Sub-account
  • Risk Control System
    • Oracle
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  • Tokenomics
    • TGE and others
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  1. Position Management

Borrowing Capacity

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Last updated 2 years ago

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 Vš‘‘š‘š 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 š‘‰š‘„ assuming that the user has a borrowable amount (in USD) in a particular token is as follows.

Where:

BFx: Borrow factor of asset x