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 Vš‘‘š‘š which is calculated by the following formula.


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.


BFx: Borrow factor of asset x

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