Parameters

An overview of all the parameters governing each market

Each market is governed by its own set of parameters, which are fixed at the time of market deployment. Be aware of this fact and plan accordingly when deploying a new market.

Parameter
Explanation
APR

Max Open LTV

The maximum Loan-to-Value ratio to which you can open positions

70%

Liquidation LTV

Loan-to-Value threshold at which a loan will become eligible for liquidation

75%

Emergency Liquidation LTV

Loan-to-Value threshold at which the liquidation penalty will be increased to insure timely liquidation

80%

Liquidation Penalty

Dictates how much of your collateral will be given to the liquidator as an incentive to clear the debt

10%

Emergency Liquidation Penalty

Increased liquidation penalty for highly-distressed positions to incentivise liquidators to clear a positions debt promptly

15%

Loan Origination Interest

A one-time interest payment to SOL LPs at loan origination

1%

Min Borrow APR

Borrow APR at 0% utilization ratio

15%

Max Borrow APR

Borrow APR at 100% utilization ratio

400%

Optimal Borrow APR

Borrow APR at the optimal utilization ratio of 70%

70%

Market Creation Fee

The fee charged by the protocol in order to create an isolated market

2 SOL

Swap Fee

The fee charged to use the swap feature

0.5%

Trading Fee (buy)

The fee for opening a Margin Position

(Leverage is subject to Loan Origination Interest + Loan Origination Fee)

0%

Trading Fee (sell)

The fee for closing a Margin Position

Charged only on users' equity, not on the leverage (Sell Amount - Debt)

1%

Reserve Factor (Borrow APR)

The protocol share of the borrow APR

20%

Reserve Factor (Liquidation)

The protocol share of the liquidation penalty

10%

Reserve Factor (Rewards)

The protocol share of added reward incentives

10%

Loan Origination Fee

Loan origination fee that goes to the protocol

1%

Vault Performance Fee

The protocol fee charged for net vault earnings

25%

Vault Early Exit Tax

Fee charged for withdrawing funds from the vaults within 350 seconds after deposit

1%

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