💡Borrowing Limit

Borrowing Limit: CDR > 75%

Storage Providers (SPs) using FilUs must carefully monitor their Collateral-to-Debt Ratio (CDR) to avoid borrowing restrictions and potential liquidation. The maximum borrowing rate in FilUs is set at a CDR of 75%, meaning that an SP’s debt cannot exceed 75% of their total collateral value.

Key Borrowing Guidelines:

• CDR < 75% (Healthy State): When an SP’s CDR is below 75%, they are in a healthy borrowing state, allowing them to continue borrowing without restrictions. This level provides a safety margin, ensuring that their debt remains well-backed by collateral.

• CDR > 75% (Borrowing Disabled): If an SP’s CDR exceeds 75%, the protocol will automatically disable further borrowing. In this state, SPs will also be restricted from withdrawing rewards until their CDR is reduced below 75%. Immediate action is required to either reduce debt or increase collateral to restore normal borrowing conditions.

• CDR > 85% (Liquidation Trigger): If the CDR reaches 85%, liquidation will be triggered. To prevent this, we strongly recommend that SPs act as soon as their CDR approaches 75%. If your CDR touches 75%, please contact our team to assist you in rebalancing your debt and collateral, helping you avoid liquidation.

Maintain a Safe Borrowing Ratio

SPs should always aim to maintain a CDR below 75% to ensure continued access to borrowing and avoid protocol restrictions. FilUs is designed to protect both stakers and borrowers, so regularly monitoring your CDR is essential for smooth operations within the system.