> ## Documentation Index
> Fetch the complete documentation index at: https://xoxno.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Risk parameters on Stellar Lending

> Loan-to-value, liquidation threshold, and liquidation bonus explained for XOXNO Stellar Lending users.

Each listed asset has risk settings that control how much you can borrow, when you can be liquidated, and what liquidators earn. You see the effective limits on [XOXNO lending](https://xoxno.com/defi/lending) when you open or manage a position.

## 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 $1,000 of XLM with 70% LTV. You can borrow up to about $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](/stellar-lending/health-factor).

**Example:** Same $1,000 of XLM with a 78% liquidation threshold counts as $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. |

Check [XOXNO lending](https://xoxno.com/defi/lending) or [markets](/stellar-lending/markets) for which assets are active and what caps apply.

<Tip>
  **For developers:** Full parameter tables, ranges, and live config values are in [risk parameters](/stellar-lending/dev/risk-parameters).
</Tip>