DeFi lending terms in plain English
A number showing how safe a loan is: (collateral × liquidation threshold) / debt. Below 1.0 the position can be liquidated.
The maximum collateral-to-debt ratio before a position becomes liquidatable, set per asset (e.g. 82.5% for ETH).
How much you can borrow against your collateral. Always lower than the liquidation threshold.
Repayment of part of an undercollateralized loan by a third party in exchange for the collateral plus a bonus.
Assets you deposit to back a loan. Their value and liquidation threshold determine your borrowing power.
The discount (5–15%) a liquidator receives on your collateral — your penalty for being liquidated.
The on-chain price feed a protocol uses to value collateral and debt.
An isolated collateral/debt position in Fluid with its own risk parameters.