Position Risk

Position risk is expressed via a Loan-to-value ratio, which is the ratio between the debt and collateral within your Kamino Lend position.

Loan-to-value ratio is calculated as follows:

risk_adjusted_debt_value / collateral_value * 100

"Risk-adjusted debt value" is a value that accounts for the "risk" of a debt asset within the protocol. It is calculated using the Borrow Factor assigned to the asset.

Borrowers have three different LTV_ratios that expresses the risk of their position:

  • LTV (or Current LTV) = Current position health

  • Max LTV = Borrowing limit of your position - gives a buffer between Liquidation LTV

  • Liquidation LTV = The LTV at which your position becomes eligible for liquidation

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