Collateral c: The $ amount of deposits a trader owns
Debt d: The $ amount borrowed from the lender
Collateral factor cF: Determines how much borrow capacity a trader has when depositing an asset. Also described as Liquidation Threshold
Discounted Collateral: dC = sum of cF*(deposits in asset) for all assets
Borrow Capacity bC=dC-d: The $ amount a trader can borrow
Account Liquidation Threshold: lT=dC/c
Risk Metrics
Health Factor: hF=dC/d, if lower than 1, the account can be liquidated
LTV: ltv=c/d
Derived Values
Max Leverage in pair: l=1/(1-cfBuy); cfBuy = collateralFactor of Buy Asset
Max Open Size for pair: mO=bC*l=bC(1-cfBuy); cfBuy = collateralFactor of Buy Asset
Liquidation Price (ideally for assets paired with stablecoins, otherwise, one of the respective assets is assumed to have a constant price and _USD-values are replaced with raw balances):
Long: lP=sell_USD/(buy*cFBuy); sell_USDC=sell/borrow asset amount in USD; buy=purchase amount denominated in collateral/buy currency
Short: lP=buy_USD*cfBuy/sell; buy_USDC=buy/deposit asset amount in USD; sell=sell/borrow asset amount in sell currency