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:

$$Total BorrowPower = \Sigma_{collateral} LTV_{collateral} * MarketValue_{collateral}$$

$$RiskFactor = \frac{ \Sigma_{borrow} MarketValue_{borrow}}{ \Sigma_{collateral} LiquidationThreshold_{collateral} * MarketValue_{collateral}}$$

$$LTV = \frac{\Sigma_{borrow} MarketValue_{borrow}}{\Sigma_{collateral} LTV_{collateral} * MarketValue_{collateral}}$$