💰Collateral

Collateral Weight

Each collateral has initial weight and total weight. Weight is used to calculate account value.

$$Account Value = \sum Weighted\ Value\ of\ Collateral + \sum Unrealized PnL$$

Symbol	Total Weight	Initial Weight	Liquidation Bonus
USDC	1	1	-
USDT	0.97	0.95	1%
FRAX	0.95	0.95	0.5%
DAI	0.95	0.90	1%
ETH	0.85	0.83	5%
WBTC	0.75	0.70	5%
wstETH	0.90	0.85	3%
ARB	0.80	0.80	3%

Collateral Liquidation

If a user’s total account value drops below 0, the collateral will be at the risk of being liquidated.

Then, liquidators will repay the negative USD balance of users and liquidate their collaterals at a discounted price.

Liquidation is determined by price feeds from a Chainlink oracle, and its liquidation price is also calculated, using price feeds from an oracle as well.