Market Rules

Market Rules specify the Collateral and Debt Factors for each asset used in the calculation of the Health Factor. Market Rules also specify the penalty paid on liquidation. They are used by Abax DAO to manage the protocol risks and give users the best possible borrowing opportunities tailored to current market needs.

Each user can choose only one rule at a time.

The examples of rules are shown below in the form of tables. Not specified assets are not allowed to be used as collateral or to be borrowed while using a given rule.

Standard rule

asset	Collateral Factor	Debt Factor	penalty
USDC	0.98	1.02	0.05
DAI	0.97	1.03	0.03
DOT	0.9	1.1	0.07
AZERO	0.7	1.3	0.1
RISKY	x	x	x

Stablecoin rule

asset	Collateral Factor	Debt Factor	penalty
USDC	0.99	1.01	0.01
USDT	0.99	1.01	0.01
DAI	0.98	1.02	0.01
other	x	x	x

AZERO/stkAZERO

asset	Collateral Factor	Debt Factor	penalty
AZERO	0.97	1.03	0.02
stkAZERO	0.97	1.03	0.02
other	x	x	x

Isolation Risky Collateral

asset	Collateral Factor	Debt Factor	penalty
RISKY	0.2	x	0.5
USDC	x	1.02	0.01
other	x	x	x

Isolation Risky Borrow

asset	Collateral Factor	Debt Factor	penalty
RISKY	x	5	0.5
USDC	0.98	x	0.01
other	x	x	x