RiFi Resources
  • Welcome
  • Trusted Links
  • Brand Assets
  • WHITEPAPER
    • Introducing Rikkei Finance
    • RiFi DeFi Lending & Borrowing
      • Interest Rate Model
      • Asset Selection
      • Collateral Factor
      • Liquidation
      • Supplying Assets
      • Borrowing Assets
      • RiWork
        • Market Analysis
      • Farming
        • Liquidity Farming
        • TITA Farming Vault
        • Double Farming Vault
        • RiFi Farming Vault
    • RiFi NFT
      • NFT Indexing
      • NFT Rentals
        • Escrow Mode Rentals
        • Transfer Mode Rentals
      • NFT Lending
    • Tokenomics
    • Roadmap
  • User Guides
    • RiFi DeFi Lending & Borrowing
      • Main User Guide
        • Log In To Your Account
        • Supply Assets
        • Borrow Assets
        • Repay Your Borrowing
    • RiFi NFT
      • Log In To Your Account
      • Manage Your Profile
      • Manage Your Account Balance
      • NFT Indexing
        • NFT Indexing Package 1
        • NFT Indexing Packages 2-3-4
      • NFT Rentals
        • Manage NFTs
          • As Asset Owner
          • As Renter
        • Check Your Transaction History
        • List An NFT
        • List Multiple NFTs
        • Rent An NFT (Non-Collateralized Mode)
        • Rent An NFT (Collateralized Mode)
        • Make A Counter Offer
        • Accept A Counter Offer As Asset Owner
        • Reject A Counter Offer As Asset Owner
        • Cancel A Counter Offer As Renter
      • NFT Lending
        • Manage NFTs
          • As Asset Owner
          • As Lender
        • Mint A Vault As Asset Owner
        • Deposit NFTs As Asset Owner
        • Approve To List Or Set Loan Terms As Asset Owner
        • Delist NFTs As Asset Owner
        • Make/Cancel A Counter Offer As Lender
        • Accept/Reject A Counter Offer As Asset Owner
        • Fund Loan As Lender
        • Repay/Roll Over A Loan As Asset Owner
        • Accept/Reject To Extend A Loan As Lender
        • Claim The NFT As Lender
      • Affiliate Partners
  • FAQs
    • RiFi DeFi Lending & Borrowing
    • RiFi NFT
      • NFT Indexing
        • Platform Partners
      • NFT Rentals
        • Affiliate Partners
      • NFT Lending
  • Platform Partners
    • NFT Indexing
    • Integration - Escrow Rental Mode
    • Development Effort Estimation and Timeline
  • Terms & Conditions
    • Terms & Conditions
      • Acceptance
      • Certain Defined Terms and Related Information
      • Eligibility
      • RiFi Account
      • Fees
      • Your Use of the Platform and Conduct
      • Restriction
      • Limitation of Services / Account Closure / Termination
      • Lending & Borrowing Services
      • Data Protection / Privacy
        • Privacy Policy
      • RIFI Token Sale & Usage
        • Acceptance
        • Scope of Terms
        • Warranties
        • Regulations
        • Cancellation & Refusal at Seller's Discretion
        • Partial Invalidity
        • Indemnity
        • Intellectual Property
        • Release
        • Risks
        • Termination
        • Data Privacy
        • Claims
        • Disclaimers
  • Developers
    • Developer Docs
Powered by GitBook
On this page
  1. WHITEPAPER
  2. RiFi DeFi Lending & Borrowing

Collateral Factor

Assets held by the RiFi protocol are used as collateral to borrow from the protocol. Each market has a collateral factor, ranging from 0% to 90%, that represents the percentage of the underlying asset value that can be borrowed. Illiquid, small-cap assets have low collateral factors; while liquid, high-cap assets have high collateral factors.

The collateral factor is determined by the protocol based on market liquidity measurement, volatility rate of an asset so that during the liquidation period, the market for this asset will not fluctuate too greatly to affect the system. This also protects the protocol from over-collateralized loans and default risk.

PreviousAsset SelectionNextLiquidation

Last updated 2 years ago