Collaterals
Max Deposits (Global)
These values represent the maximum amount of each collateral type that can be deposited across all users on a global scale for the specified blockchain network.Max Deposits (User)
What is Loan-to-value (LTV)?
Loan-to-Value (LTV) is a key risk metric that measures the ratio of your negative USDC value, which includes your negative balance (USDC_balance) and unrealized PnL (upnl), to your collateral’s value. On Orderly, LTV replaces traditional credit scores to determine your borrowing power in our asset-backed lending system. A lower LTV signifies a safer loan.
By maintaining a healthy LTV, you can maximize the loan you can access while enhancing the safety of your position against market volatility. This empowers you to borrow with confidence. Your collateral is held securely by Orderly until the loan is repaid, providing a clear and powerful way for you to leverage your holdings.
How to calculate LTV
The acceptable range of LTV ratio remains below 95%. Auto conversion of collateral will be triggered if the LTV ratio reaches 95% and above.
Collateral Ratio
What is Collateral Ratio?
The Collateral Ratio on Orderly is the value at which we recognize your asset deposited as collateral, expressed as a percentage. A higher ratio provides a greater safety buffer against market fluctuations and lowers the risk of liquidation. Orderly calculates this by assigning asset-specific “weights,” where more volatile assets contribute less to the ratio than stable assets. The Collateral Ratio serves as the primary indicator of an account’s financial health on the platform.How to Calculate Weight?
DCF_i= Discount Collateral FactorK= 1.2