Port Finance
Search…
Terminologies
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:
$Total BorrowPower = \Sigma_{collateral} LTV_{collateral} * MarketValue_{collateral}$
$RiskFactor = \frac{ \Sigma_{borrow} MarketValue_{borrow}}{ \Sigma_{collateral} LiquidationThreshold_{collateral} * MarketValue_{collateral}}$
$LTV = \frac{\Sigma_{borrow} MarketValue_{borrow}}{\Sigma_{collateral} LTV_{collateral} * MarketValue_{collateral}}$