Global Parameters

Global Parameters

Parameter	Value	Description
BNB minimum debt size	2 BNB	The minimum amount in BNB that a user can borrow to open a leveraged position
BUSD minimum debt size	400 BUSD	The minimum amount in BUSD that a user can borrow to open a leveraged position
Reserve pool take rate	10%	Percent of the borrowing interest rate that is put into reserve pool
Liquidation bonus	5%	A portion of the position value that goes to the person that calls liquidate function on underwater positions
Reinvestment bounty	3%	A portion of the reward that bonus that goes to the person that calls reinvest function

Interest rate model

We employ a triple-slope interest rate model to determine the borrowing interest rate with detail below:

Utilization Range	Interest rate at min. range	Interest rate at max. range	m	b
0% - 50%	0%	10%	0.2	0
50% - 90%	10%	10%	0	0.1
95% - 100%	10%	60%	5.0	-4.40

Interest=m∗utilization+b