Calculations
Health calculations
borrowing Power ratio (Pr): The borrowing power ratio of an asset is a number between 0 and 1 and describes how much you can borrow against this certain asset. It is calculated as:
1x
1 / (1+1)
0.5
3x
3 / (3+1)
0.75
5x
5 / (5+1)
0.8333
Collateral (Ct & C): DeltaPrime being fully cross-margin, means that "collateral" as such does not exist, but is either a token-derived collateral value (Ct):
Or a portfolio-derived value (C):
In words: The dollar value of your collateral is equal to the dollar value of your assets, minus the dollar value of your borrowed tokens, either for one token, or for the whole portfolio.
Cross-margin Borrowing Power
Health of single asset (Ha)
Examples
5x, $100, $250
(0.8333*100 + 0.8333 * 250 - 250) / (0.8333*100) *100%
50%
5x, $120, $250
(0.8333*120 + 0.8333*250 - 250) / (0.8333*120) * 100%
58.3%
3x, $100, $101
(0.75 * 100 + 0.75 * 101 - 101) / (0.75*100) * 100%
66.3%
Health of all assets (H)
Weights
In order to calculate a cross-margin portfolio, we need to take different borrowing powers and token prices into account. To do this we calculate the weighted collateral value of a token (Cw) and the weighted borrowed value (Bw) of a token. By multiplying either with both the token price and Borrowing Power ratio (Pr), we get a value that represents that token's weighted collateral/borrowing value.
Compounding the collateral weights of all tokens within one Prime Account, we get the portfolio's Total Collateral weight (ΣCw). Compounding the borrowed weights of all tokens within one Prime Account we get the portfolio's Total Borrowed weight (ΣBw).
By using the same formula we used with the single-asset health meter, but taking into account the different token prices and borrowing powers, we get:
Health Playground
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