Loan-to-value (LTV)
LTV is the share of your collateral value you can borrow against when you take new debt or withdraw collateral. Example: You supply 700 worth of other assets, subject to pool liquidity and caps. You cannot borrow $900 against that collateral without adding more supply or repaying debt. LTV is your borrowing ceiling, not the liquidation trigger.Liquidation threshold
The liquidation threshold is always higher than LTV. It weights your collateral when the protocol measures health factor. Example: Same 780 of safety buffer in the health factor check. If you borrowed $500, your health factor stays above 1. If collateral value falls sharply, the weighted collateral can drop below your debt and push health factor under 1. Risk parameters on your collateral are set when you supply. Later market updates apply to new supplies, not retroactively to old positions.Liquidation bonus
When a position is liquidated, the liquidator repays some debt and receives extra collateral as a bonus. That bonus encourages fast cleanup of unhealthy positions. The bonus varies by asset and spoke. A portion of the bonus goes to the protocol as a fee; the rest rewards the liquidator.Other limits you may hit
| Limit | What it means for you |
|---|---|
| Supply cap | Maximum total supplied for an asset across the pool. |
| Borrow cap | Maximum total borrowed for an asset. |
| Max utilization | The pool may pause new borrows when too much liquidity is already lent out. |