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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