Skip to main content
Every borrow market on AGI3 publishes a small set of parameters. Together they decide how much you can borrow against a given collateral, and how far prices can move before your position is liquidated. They are set by the underlying protocol per market.

​
The parameters

​
Parameters by collateral class

Parameters are set per market, and the values track the collateral behind them: the more volatile or less liquid the collateral, the lower the borrowing ceiling, the wider the buffer, and the higher the penalty. Read the table as class defaults; the market page always shows the exact values that govern your position, and those are the ones that apply.

​
Loan-to-value

Your LTV is the value of what you owe divided by the value of what you have posted:
Both sides are valued at the market’s own oracle price, not at the market price you see quoted elsewhere. This matters: the protocol’s solvency check runs against the oracle, so the oracle is the only price that decides whether an action succeeds or a position is liquidatable. A position can look comfortable at market prices and still be refused at oracle prices.

​
The liquidation buffer

Max borrowable LTV and the liquidation threshold do different jobs.
  • Max borrowable LTV is a limit on new borrowing. Ask for more than this and the transaction is refused.
  • Liquidation threshold is the point at which your position can be liquidated.
The difference between them is your buffer. In a blue-chip crypto market, with an 80% max LTV and an 85% liquidation threshold, borrowing the absolute maximum leaves you five percentage points of LTV before liquidation. That is a smaller cushion than it sounds, because LTV rises both when collateral falls and when interest accrues on your debt. Stock markets run the other way: a lower ceiling (60 to 65%) but a wider buffer of ten points or more before the 75% threshold, sized for collateral that can gap when its underlying market reopens. This buffer is what health factor measures. A position at exactly the max borrowable LTV has a health factor of 1.00, and one at the liquidation threshold has 0.00.

​
The 3% safety margin

When the platform shows you a maximum borrow amount or a maximum withdrawal, it quotes 97% of the theoretical limit. This is deliberate. The protocol re-runs its solvency check at execution time, against the live oracle price and against debt that has accrued interest since you opened the form. A number computed at the theoretical limit would frequently be rejected by the time it reached the chain. The 3% reduction leaves room for that drift. If you want to borrow the true maximum, expect to do it in stages rather than in one transaction.

​
Available liquidity

Separately from your own limits, a market can only lend what it actually holds. If a market’s available liquidity is lower than your collateral would otherwise permit, your borrow is capped by liquidity instead. The platform shows you the lower of the two. The same constraint applies in reverse when you supply: if a market’s assets are heavily borrowed, only part of your supply may be withdrawable at that moment. This feeds the liquidity component of your portfolio health score.

​
Parameters can change

Max LTV, liquidation threshold, and available liquidity are properties of the underlying market. Check the parameters of the markets you use as part of the routine in Monitor positions and alerts.