# Loan Terminlogy

#### Collateral Ratio <a href="#collateral-ratio" id="collateral-ratio"></a>

Collateral Ratio = Collateral Value / Borrowed Synthetic Asset Value (denominated in $USD), system will liquidate loans with collateral ratio lower than 130%.

#### Interest Rate <a href="#interest-rate" id="interest-rate"></a>

Interest Rate = Capital Utilization Rate \* Utilization Multiplier + Base Interest Rate, base interest rate is about 0.5% annually, utilization multiplier is a configurable parameter, the default value is 1. Capital Utilization Rate = Open Interest Value/ (Minted Synthetic Asset Value + Open Interest Value).

#### Open Interest <a href="#open-interest" id="open-interest"></a>

Borrowed synthetic assets in the whole system.

#### Accrued Interest <a href="#accrued-interest" id="accrued-interest"></a>

Accrued Interest = Borrowed Synthetic Asset *Interest Rate* Borrowing Duration Time. Accrued Interest will be transfered into fee pool and finally distributed to OGX stakers.

#### Fee Rate <a href="#fee-rate" id="fee-rate"></a>

Fee Rate is the charge proportion of borrowing synthetic assets. The default value is 0.1%. It can be adjusted according to market condition.

#### Fee Cost <a href="#fee-cost" id="fee-cost"></a>

Fee Cost = Borrowed Synthetic Asset Value \* Fee Rate, the fee cost will be transfered into fee pool and finally distributed to OGX stakers.

#### Liquidation Price <a href="#liquidation-price" id="liquidation-price"></a>

Liquidation Price = (Borrowed Synthetic Asset Value \* Liquidation Line) / Collateral Amount, a loan will be liquidated when the collateral price is at liquidation price.

#### Pending Withdrawals <a href="#pending-withdrawals" id="pending-withdrawals"></a>

If BNB is used as collateral, all collectable BNB can be claimed at pending withdrawals.

#### Total to Repay <a href="#total-to-repay" id="total-to-repay"></a>

Total to Repay = Loan + Accrued Interest.


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