Glossary of Terms

Loan to Value (LTV): The amount of $MORE (expressed in a percentage) borrowed against the collateral. The greater the LTV the closer the liquidation price will be to the actual price of the collateral, increasing overall liquidation risk.

Liquidation Price: If the trading price of your collateral is at or below this number, your position will be liquidated

Collateral Ratio: The collateral ratio is equal to $MORE Borrowed / Value of Collateral and help represent the current health of the loan. A low collateral ratio means each $MORE is backed by more collateral.

Maximum Collateral Ratio: Maximum collateral ratio (MCR) represents the maximum amount of debt a user can borrow against the current value of the collateral token. For instance, if you are depositing $100 $UKRE of collateral and the MCR is 85%, then you can borrow up to 85 $MORE.

The team determines the MCR based on a variety of factors with the primary evaluation done by our in-house risk analyst.

Liquidation Fee: This is an amount of collateral that a borrower looses when their CDP is liquidated. The fee is deducted directly from the borrower’s collateral and shared between protocol insurance fund and liquidator as compensation for the time and risks that the liquidator may be taking (e.g., slippage, high gas fees, etc.) See this hypothetical for more context.

Borrow Opening Fee: A fee that is charged on the amount of $MORE that you borrow. For example, if you borrow 100 $MORE on a market with a 1% borrow fee, you will owe 1 $MORE in addition to the 100 $MORE you borrowed. Your outstanding debt will therefore be 101 $MORE.

Interest/Borrow APR: The annualized rate that your debt will increase by each year.