Liquidation Bonus 101

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TL;DR:

The discussion, initiated by Hillbilly_chess, focused on the calculation of the Liquidation Bonus, its relation to risk assessment, collateral advance rates, and slippage. It also highlighted potential factors that could influence changes in the Liquidation Bonus for specific assets, indicating its dynamic nature and susceptibility to market and risk factors.

The topic of discussion was initiated by Hillbilly_chess, who sought to delve deeper into the calculation of the Liquidation Bonus for each asset1. The conversation revolved around the understanding that this calculation is intrinsically linked to risk assessment. It was also acknowledged that the Liquidation Bonus should be a function of collateral advance rates and slippage. However, Hillbilly_chess was interested in further clarification and a more detailed discussion on how this determination is made.

The discussion also touched on the potential factors that could cause the Liquidation Bonus to change for specific assets in the future. This aspect of the conversation was particularly important as it highlighted the dynamic nature of the Liquidation Bonus and its susceptibility to various market and risk factors.

In conclusion, the discussion provided a deeper understanding of the Liquidation Bonus calculation and its relation to risk assessment, collateral advance rates, and slippage. It also shed light on the potential factors that could influence changes in the Liquidation Bonus for specific assets in the future. However, it seems that further discussion and clarification on this topic may be necessary for a more comprehensive understanding.

Posted 2 years ago

Last reply 2 years ago

Summary updated 2 months ago

Last updated 06/12 00:44