Clearing system

Value at risk

The value of risk depends on the maximum loan-to-debit ratio (Loan to Value), the user's maximum

borrowing amount and the [value ratio] of a specific pledge asset, which measures the maximum

borrowing capacity of the pledge asset. The risk value is used to measure the overall health of the user's

debt. The higher the value, the higher the probability of being liquidated. When the value of the asset

loaned by the user> the value of the loanable asset (risk value> 100), the user will trigger the liquidation

condition. At this time, any user can call the contract as the liquidation executor to liquidate borrowers

whose risk value is greater than 100.

Liquidation rewards, thresholds and coefficients

The liquidation threshold of GoldFox is 100%. The liquidation loss is related to your liquidated assets and

the liquidation coefficient. The liquidation coefficient of GoldFox is 50%. When the assets are liquidated,

8% of the liquidation rewards will be given to the liquidator.