Port Finance
Introduce the users to some of the terminologies in the port finance
For each assets that Port Finance supports, it has the following parameters:
  • Loan to Value Ratio: the max ratio between loan to collateral that the users are allowed to borrow
  • Liquidation Threshold: the ratio between loan to collateral at which the collateral can be bought by liquidator at a discount
  • Liquidation Bonus: the discount at which the liquidator can come in and buy the collateral
  • Borrow Fee: the fee that is changed to the protocol
  • Flash Loan Fee: the fee percentage that is charged for flash loan
For each wallet they have the following statistics:
  • Total borrowing power: the total monetary value in USD that the users are allowed to borrowed
  • Risk factor: represents the safety of the your deposited asset against borrowed assets, the higher the risk factor the riskier is your loan. When the risk factor reaches 100%, your loan will be liquidated.
  • Loan to Value ratio: the ratio of how much users have borrowed compared to their deposited asset
Concretely, the above statistics are calculated as followed:
TotalBorrowPower=ΣcollateralLTVcollateralMarketValuecollateralTotal BorrowPower = \Sigma_{collateral} LTV_{collateral} * MarketValue_{collateral}
RiskFactor=ΣborrowMarketValueborrowΣcollateralLiquidationThresholdcollateralMarketValuecollateralRiskFactor = \frac{ \Sigma_{borrow} MarketValue_{borrow}}{ \Sigma_{collateral} LiquidationThreshold_{collateral} * MarketValue_{collateral}}
LTV=ΣborrowMarketValueborrowΣcollateralLTVcollateralMarketValuecollateralLTV = \frac{\Sigma_{borrow} MarketValue_{borrow}}{\Sigma_{collateral} LTV_{collateral} * MarketValue_{collateral}}
Last modified 5mo ago
Copy link