📚Glossary of Terms

Collateralization

Collateral is the capital or value put up to secure a loan. For example: when taking a loan of BSC tokens worth $100 it is common practice to put up tokens of value to secure the loan. When the value of the collateral is less than the value of the borrowed tokens, this is called an under collateralized loan. When the value of the collateral is higher than the value of the borrowed tokens, this is called an Over Collateralized Loan. Over Collateralized Loans are considered safer, and are used by CoachAI Bank.

Over Collateralized Loan

CoachAI Bank offers Over Collateralized Loans. An Over Collateralized Loan is a loan wherein the collateral put up to secure the loan is worth more than the tokens borrowed. The amount of collateral required for a given loan depends upon that token's collateral factor.

Collateral Factor

The ratio which determines how much collateral is required to take out a loan of a given token. For example, if a user supplies 100 DAI as collateral, and the collateral factor for DAI is 60%, then the user can borrow assets worth 60 DAI (60% of the collateral supplied).

Collateral factors can vary from token to token.

Liquidation

When the value of a borrowed position exceeds the amount allowed by the collateral factor, liquidation will happen. At CoachAI Bank, a borrow position will be partially liquidated to rebalance the loan. When a loan is liquidated, a liquidation incentive is also charged to the loan. For wsCADT, this is 12%. For all other loans it is 10%.

Liquidation Factor

The Liquidation Factor is the rate at which loans are liquidated when they become undercollateralized. CoachAI Bank has a liquidation factor of 50%. This means that if you borrow tokens, once the value of the loan rises above 50% of the value of the collateral, the loan may be liquidated. The amount of the loan liquidated is determined by the Close Factor.

Close Factor

The Close Factor is the amount of an undercollateralized loan which is liquidated. CoachAI Bank has a Close Factor of 50%. This means that in the event of liquidation, 50% of the position will be liquidated to cover the debt.

Interest

To keep a borrowing position open, a compounding interest rate is applied at each network block. This means that to repay a loan, you will need a larger value of tokens than were borrowed. Interest rates at CoachAI Bank can vary but are usually about 3%.

Network Supply Balance

The value of all tokens supplied to the network by all users.

Network Borrow Balance

The value of all tokens borrowed from the network by all users.

Assets Utilization

The percentage of assets borrowed from the supply, calculated as:(BorrowBalance/SupplyBalance)∗100 (BorrowBalance/SupplyBalance)∗100

Supplied Assets

A breakdown of all the tokens supplied by all users. Hover over the borrowed value to see the percentage of a given token which has been borrowed.

Lending and Borrowing Parameters

​For an explanation of terms, view our Glossary​