> For the complete documentation index, see [llms.txt](https://kulfi.gitbook.io/kulfi-finance-3/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kulfi.gitbook.io/kulfi-finance-3/terminologies.md).

# Terminologies

* **Total borrowing power**: the total monetary value in stablecoin 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:

$$
Total BorrowPower
\= \Sigma\_{collateral} LTV\_{collateral} \* MarketValue\_{collateral}
$$

$$
RiskFactor = \frac{ \Sigma\_{borrow}  MarketValue\_{borrow}}{ \Sigma\_{collateral} LiquidationThreshold\_{collateral} \* MarketValue\_{collateral}}
$$

$$
LTV = \frac{\Sigma\_{borrow}  MarketValue\_{borrow}}{\Sigma\_{collateral} LTV\_{collateral} \* MarketValue\_{collateral}}
$$