@askrafiki's thread

2/7 🧵
Collateral ratio: define three numbers.

• Initial collateral ratio: borrower must deposit, say, 200% collateral.
• Warning ratio: e.g. 170%.
• Liquidation ratio: e.g. 150%.

So if someone borrows 1,000 HBD, they need 2,000 HBD-equivalent HIVE/HP collateral at origination. This mirrors normal crypto lending risk design: initial LTV, maintenance trigger, liquidation trigger. CR Equity describes that three-level structure clearly in institutional crypto lending: risk model.