Defx Docs
Go to WebsiteTrade on Defx
  • About Defx
  • Defx Platform Overview
    • Self-Custodial
    • Central-Limit Order Book (CLOB)
    • APIs & Webhooks
  • Defx Product Docs
    • Orders
    • Margin
    • Liquidation
    • Insurance Fund
    • Auto-Deleveraging
    • Just-in-Time (JIT) Funding
    • Self Trade Prevention
    • Price Oracle
    • Fees
    • Multi-Asset Mode
      • Collateralization & Liquidation Ratios
      • Liquidation in Multi-Asset Mode
    • Glossary
  • Defx Smart Contracts
  • Contract Specifications
  • Defx Developer Hub
    • REST APIs Documentation
      • REST API Postman Collection
    • WebSocket Documentation
      • User Data Streams (Closed Socket)
      • MarketFeed Streams (Open Socket)
  • Referrals
  • Points
  • Using our Testnet
  • Audits
  • Risks
  • Restricted Territories
  • Terms & Conditions
  • Features
    • Trade Smarter: How Defx's Multi-Asset Collateral System Transforms Crypto Trading
    • sUSDe support
Powered by GitBook
On this page
  1. Defx Product Docs
  2. Multi-Asset Mode

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

PreviousMulti-Asset ModeNextLiquidation in Multi-Asset Mode

Last updated 1 month ago

Page cover image