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Risk Parameters
Banker Joe adopts risk parameters commonly used by other lending protocols to manage platform risk.

Collateral Factor

The collateral factor is the percentage of collateral that can be borrowed against.
E.g. A deposit of 1000 USDC.e and a collateral factor of 80% means you can borrow up to $800 worth of assets.

Liquidation

Seized collateral is liquidated at an 8% discount for all markets in order to incentivise liquidators. Of the 8%, the protocol takes a portion of liquidated tokens as determined by the protocol seize share.
E.g a protocol seize share of 2.8% means 2.8% of 8% of liquidations will goto the protocol and the remaining 6.4% will goto the liquidator.

Flash Loan

Flash loan fee is 0.08% for all markets. Of the 0.08%, the protocol takes a portion of the fee as determined by the reserve factor.
E.g. A reserve factor of 20% means 0.016% will goto reserves and the remaining 0.064% will goto the depositors.

Reserve Factor

A portion of accrued interest and flash loan fee goes into the protocol reserves as determined by the reserve factor. The purpose of the protocol reserves is two-fold: 1) to act as an insurance buffer in a shortfall event and 2) to provide source of revenue for the protocol.
Symbol
Collateral
Collateral Factor
Reserve Factor
Protocol Seize Share
AVAX
Y
75%
20%
1.6%
WETH.e
Y
75%
20%
1.6%
WBTC.e
Y
75%
20%
1.6%
USDC.e
Y
80%
15%
1.6%
USDT.e
Y
80%
15%
1.6%
DAI.e
Y
80%
15%
1.6%
LINK.e
Y
60%
25%
1.6%
MIM
Y
60%
25%
1.6%
xJOE
Y
40%
40%
1.6%

Glossary

Parameter
Description
Collateral
Y = Accepted as collateral, users can borrow against this asset.
Collateral Factor
Similar to Loan To Value (LTV), the higher the collateral factor the more borrow limit the user can take.
Reserve Factor
Share of borrowing interest that is withheld by the protocol.
Liquidation Discount
Discount to oracle market price which the asset is sold to liquidator, during the liquidation event.
Flash Loan Fee
Fee that goes to protocol when a flash loan is made from the market
Last modified 14h ago