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