Risk Parameters

The table below shows the risk parameters for each asset that is currently supported on SiO2 Finance. The table will continue grow as we list more assets to the protocol.

Asset	Collateral	Loan To Value	Liquidation Threshold
ASTR	Yes	55%	65%
DOT	Yes	60%	75%
USDC	Yes	80%	85%
USDT	Yes	77.5%	82.5%
wBTC/BAI/BNB/wETH/nASTR/DAI	To be delisted

FAQ

What is Loan To Value (aka. LTV)?

LTV is defined as the maximum asset (in dollar value) that one can borrow with a specific asset acting as a collateral.

What is Liquidation Threshold?

Liquidation Threshold is the percentage by which a position is defined as collateral deficient. For example, Liquidation Threshold of 80% means that if the borrowed value rises over 80% of the collateral, the position is collateral deficient. Then the asset might be liquidated. For each wallet, the Liquidation Threshold is calculate as the weighted average of the Liquidation Thresholds of the collateral assets and their value.

How SiO2 Finance decided those risk parameters?

These risk parameters are decided based on a range of factors, such as asset liquidity on Astar Network, volatility of the asset, centralization risks, and etc.