Hydro Protocol
  • Overview
  • LST&LSTfi
    • What is Liquid Staking?
    • What is LSTFi (LST Finance)?
    • What is a Real Yield Asset (RYA)?
    • What are Real World Assets (RWA)?
  • Core Features
    • Liquid Staking Tokens (LST)
    • Auto-Compounding
    • Farm
  • Loop Stake
    • What is Hydro Loop Stake?
    • How does it fit into the Hydro Ecosystem and Injective Network?
    • How does it work?
    • Parameter Changes
    • Glossary
  • Lending
    • What is Hydro Lending?
    • Core Concepts
    • Supported Assets (Initial)
    • Liquidations
    • Risk Parameters
    • Fees
    • FAQ
  • Basic Features
    • Swap
    • LP Pools
    • Governance
  • User Guides
    • Your Journey: Mint to Farm
  • Tokenomics
  • Contract Addresses
  • Audit
  • Additional Information
  • Legal Disclaimers
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  1. Lending

Risk Parameters

Hydro Lending employs rigorous risk management parameters, including:

  • Maximum LTV: Varies per asset.

  • Liquidation Threshold: The LTV at which liquidation may occur. Also varies by asset

  • Liquidation Penalty: Bonus provided to liquidators.

Risk parameters are designed to balance capital efficiency and system safety, and they can be updated through governance.

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Last updated 10 days ago