Larix
  • Who is Larix
  • Community
  • Roadmap
  • Product Update
  • Monthly Report
    • Larix Monthly Report [Oct]2021
    • Larix Monthly Report [Nov]2021
    • Larix Monthly Report [Dec]2021
    • Larix Monthly Report [Jan ]2022
    • Larix Monthly Report [Feb] 2022
    • Larix Monthly Report [Mar] 2022
    • Larix Monthly Report [April] 2022
    • Larix Monthly Report [May] 2022
  • FAQ
    • General FAQ
    • Raydium LPs FAQ
    • Error Explanation
    • Trouble shooting
    • Liquidation
  • PROTOCOL
    • Mainnet
      • Main Pool
        • Addresses
      • Lending Launchpad
        • Bonfida Pool
        • xSOL Pool
        • LARIX Pool
        • Step Pool
        • Stepn Pool
    • Devnet
  • Larix Guide
    • Step 1: Get Wallet
    • Step 2: Connect Wallet
    • Step 3: Deposit
    • Step 4: Borrow
    • Step 5: Repay
    • Step 6: Withdraw
    • Step 7: Claim rewards
  • Interest Rate Model
  • Mathematics
    • APY
    • Mining
    • Price Feed
    • Obligation Health
  • Function
  • Design and Principle of the Liquidation
  • Access Controls
  • Security
    • Bug Bounty Reward
    • Audit
    • Oracles
  • Tokenomics
    • LARIX
    • Buy LARIX
      • b30LARIX
    • Larix Distribution
    • LARIX Token Distribution Rate Model
  • Risk
    • Risk Framework
    • Asset Risk
    • Liquidity Risk
    • External Audits & Analysis
  • API
    • Instruction
    • Function
    • Query
      • Logo
      • State
      • Reserve
      • Mining
      • Obligation
      • SDK
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  1. Risk

Liquidity Risk

Liquidity risk of the protocol is measured based on Obligation Health, the state of liquidation risk. When Obligation Health exceeds 100%, excess borrowed assets will be automatically liquidated by the bot. Borrow APY’s are set above supply APY’s to maintain a healthy liquidity pool, which assures the utilization limit is not breached. A health factor is attributed to user’s borrowed value to ensure it does not exceed the collateral factor.

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Last updated 3 years ago

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