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	1	1
USDC	Arbitrum, Ethereum, Base, Solana	1	1
sUSDe	Ethereum	0.8	0.9
USDe	Ethereum	0.95	0.97
Honey	Berachain	0.95	0.97
Bridged USDC (Stargate)	Berachain	1	1
wETH	Ethereum	0.7	0.85
stETH	Ethereum	0.7	0.85
cbBTC	Ethereum	0.7	0.85
wBTC	Ethereum, Solana, Arbitrum	0.7	0.85
LBTC	Ethereum	0.7	0.85
JitoSOL	Solana	0.7	0.85
mSOL	Solana	0.7	0.85
JLP	Solana	0.6	0.8