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Risk parameters

Please find the risk parameters of the protocol below. Note that all of them are adjustable by governance.

hashtag
Global Risk Parameters

Parameter
Value

hashtag
Pegging Risk Parameters

Parameter
Value

Maximum amount of wstETH from the reserve deposited on Aave Prime ()

80%

Curve fxUSD/USDC EMA price hits 0.998

Distribution of xPOSITIONs' collateral lent out to sPOSITIONs - Threshold C

45%

Distribution of xPOSITIONs' collateral lent out to sPOSITIONs - Debt Cap

50%

fxUSD's upward depeg threshold

1.002

Rebalance Line

LTV = 88%

Rebalance Bounty

2,5%

Liquidation Line

LTV = 95%

Liquidation Bounty

4%

Stability Pool TVL threshold under which keepers can use their funds to rebalance

$10,000

Leverage Range

1.1x - 7x

Stablity Pool redemption Period

60 minutes

Maximum amount USDC from the Stability Pool deposited on Aave Core (FIP-12arrow-up-right)

80%

Stability Pool peg arbitrage threshold

0.3%

Redemption fee

0.5%

Max redeemed fxUSD proportion of xPOSITION at a time, starting with the highest leverage

20%

USDC depeg threshold to disable USDC deposits into the Stability Pool

USDC Oracle Price hits 0.995 or below

fxUSD distribution in the Stability pool - Threshold A

95%

fxUSD distribution in the Stability pool - Threshold B

100%

fxUSD Depeg threshold - funding threshold B

FIP-12arrow-up-right