Market Parameters

Interest Rate Market Parameters

Parameters	Details
Loan to Value (LTV ratio)	Loan-to-value (LTV) is the ratio describing how much you can borrow against your collateral.
Close Factor	The percent, ranging from 0% to 100%, of a liquidatable account’s borrow that can be repaid in a single liquidate transaction. A liquidator may close up to a certain fixed percentage (i.e. close factor) of any individual outstanding borrow of the underwater account.
Liquidation Incentive	The additional collateral given to liquidators as an incentive to perform liquidation of underwater accounts.
Max Borrow APY	Maximum possible borrow APY
Target Borrow APY	Borrow APY when Current Utilization is equal to Target Utilization
Traget Utilization (Kink Point)	When utilization goes above the target utilization, interest rates are more sensitive to changes in utilization.
Current Utilization	CurrentUtilization = totalBorrows / (totalCash + totalBorrows - total Reserves) Current Utilization determines the interest rate of each market.
Reserves	Reserves are an accounting entry in each pToken contract that represents a portion of historical interest set aside which can be withdrawn or transferred through the protocol’s governance.
Reserve Factor	The reserve factor defines the portion of borrower interest that is converted into Reserves.
pFRA minted	see pToken
Exchange Rate	see pToken