5. Key parameters

Global parameters：

Name	Value	Features	Description
Minimum debt size	0.1	minDebtSize()	The minimum loan amount to open a position (if borrowed).
Borrowing rate	10%-100%*	getInterestRate()	The annualized interest rate of the borrower.
Reserve pool interest rate	20%	getReservePoolBps()	The borrower's interest portion should be stored in the bank's reserves.
Liquidation rewards	1%	getKillBps()	The portion of the position value obtained by the liquidator serves as an incentive to liquidate the position at risk.

Borrowing ratio = loan/total assets

Risk value = debt ratio/0.85

Farming pool specified parameters：

Name	Value	Features	Description
Open debt ratio	Depends on the farming pool (see below)	workFactor()	The maximum debt ratio at the time of opening/margin calling a position must be met.
Liquidation debt ratio	Depends on the farming pool (see below)	killFactor()	Debt ratio threshold. If it exceeds, anyone can liquidate the position.

HUSD/USDT

• Maximum debt ratio for opening positions: 67%

• Liquidation debt ratio: 85%

WHT/USDT

• Maximum debt ratio for opening positions: 67%

• Liquidation debt ratio: 85%

*We may adjust these initial values accordingly. In the future, the control of these parameters will transition to Pilot community governance, where PTD holders can propose and vote for any changes to these values.