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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

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Last updated 9 days ago

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