Loan Terminlogy

Collateral Ratio

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

Interest Rate

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

Borrowed synthetic assets in the whole system.

Accrued Interest

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

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

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

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

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

Total to Repay

Total to Repay = Loan + Accrued Interest.