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 Všš 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 šš„ assuming that the user has a borrowable amount (in USD) in a particular token is as follows.
Where:
BFx: Borrow factor of asset x
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