Collateralization & Liquidation Ratios

The Collateralization Ratio (CR) defines the percentage of a token's USD value that is issued as margin and is expressed as a value between 0 and 1. It determines how much usable margin is generated from a deposited asset, thereby providing a buffer against price volatility.

Liquidation Ratio (LR) on the other hand, represents the threshold price at which an asset is automatically liquidated and is expressed as a value between 0 and 1. When the asset's price reaches this threshold, the system initiates liquidation to protect the overall margin account from undercollateralization.

The CR & LR values for assets and their chains are as follows:

Asset

Chain(s)

Collaterlization Ratio (CR)

Liquidation Ratio (LR)

USDT

Arbitrum, Ethereum, Solana, Base, Polygon

1

1

USDC

Arbitrum, Ethereum, Solana, Base, Polygon

1

1

sUSDe

Ethereum

0.8

0.9

USDe

Ethereum

0.95

0.97

wETH

Ethereum, Base, Polygon

0.7

0.85

stETH

Ethereum

0.7

0.85

cbBTC

Ethereum, Base

0.7

0.85

wBTC

Arbitrum, Ethereum, Solana, Base, Polygon

0.7

0.85

LBTC

Ethereum, Base

0.7

0.85

JitoSOL

Solana

0.7

0.85

mSOL

Solana

0.7

0.85

JLP

Solana

0.6

0.8

If you represent a chain or asset that you'd like supported, please reach out here: https://forms.gle/pe315RYDDhFu3s2Z7

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