Frontier FAQ
You can borrow up to a maximum 85% of your deposited collateral, which equates to a 140% collateralization ratio, however some assets have a higher collateralization ratio (meaning less can be borrowed against them).
Over time the collateralization ratio will be reduced so that you can borrow a higher amount vs your deposited collateral, resulting in higher capital efficiency
A liquidator can seize 113% worth of your outstanding debt position as collateral. 100% of the debt + 13% liquidation penalty (or bonus, depending on the way that you look at it)
A liquidator can seize one asset that you have used as collateral
Yes, Frontier uses Chainlink oracles to calculate the point at which you become insolvent (your Debt / Credit Limit factor increases above 100%) and the 13% discount applied to the seizing of your collateral
The moment that your debt vs credit limit ratio goes above 100% you are considered insolvent by the protocol and your collateral can be seized by external liquidators
Last modified 8mo ago