> For the complete documentation index, see [llms.txt](https://current-finance.gitbook.io/current/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://current-finance.gitbook.io/current/product/market/position-risk-and-liquidations.md).
# Position Risk & Liquidations
### Position Risk
In Current Lend, position risk is captured by the loan-to-value (LTV) ratio
```
Current LTV=(risk_adjusted_debt_value / collateral_value) * 100%
risk adjusted_debt_value=debt value* borrow weight
collateral_value = Σ(collateral_amount_j × price_j)
```
{% hint style="info" %}
Notes:
Borrowers have three different `LTV_ratios` that expresses the risk of their position:
* **Current LTV** = Current position health
* **Max LTV** = Borrowing limit of your position - gives a buffer between Liquidation LTV
* **Liquidation LTV** = The LTV at which your position becomes eligible for liquidation
{% endhint %}
### **Borrow Weight**
Borrow Weight (BW) are risk-adjusted values set per asset on Current-Lend that define how much of that asset can count toward a loan’s borrowing power.
Example：
For example, let’s assume you want to supply $100 of USDC as collateral and borrow either SUI or DEEP.
* USDC MAX LTV=80%
* SUI borrow weight=1
* DEEP borrow weight=1.3
* SUI borrow capacity against USDC = ($100 \* 80%) / 1 = $80
* DEEP borrow capacity against USDC=($100 \* 80%) / 1 .3= $61.5
### Liquidation
If any debt position reaches the Liquidation LTV threshold, it becomes eligible for liquidation.
#### Partial Liquidations
To protect borrowers’ interests, Current adopts a soft-liquidation model. The **Close Factor** determines the share of a borrower’s position that a liquidator can liquidate in a single transaction. For example, if **Close Factor = 0.2**, a liquidator can liquidate at most **20%** of the borrower’s debt at a time.
#### Close Factor
| Market | Close Factor |
| ---------------- | ------------ |
| MainMarket | 20 |
| EmberMarket | 30 |
| AltCoinMarket | 30 |
| MatrixGoldMarket | 30 |
| EthenaMarket | 30 |
#### Liquidation Penalties
The Current protocol sets liquidation penalties with different parameters for each token, based on factors such as liquidity, volatility, and others.
**Example:**
Assume a 5% liquidation penalty and close factor=20%. When User A’s loan hits the 80% liquidation LTV, a liquidator steps in and repays **20%** of the debt, receiving **21%** of the collateral in return (0.2\*(1+0.05)). User A ends up with less collateral and less debt, a lower LTV, and the position stays open.
***
#### Main Market
| Asset | E-Mode Group | Liquidation Penalty |
| ----------- | ------------ | ------------------- |
| USDC | 0 | 10% |
| USDT | 0 | 10% |
| USDsui | 0 | 10% |
| USDB | 0 | 15% |
| FDUSD | 0 | 14% |
| USDY | 0 | 11% |
| BTC | 0 | 15% |
| XBTC | 0 | 15% |
| LBTC | 0 | 15% |
| SUI | 0 | 10% |
| ETH | 0 | 15% |
| haSUI | 1 | 4% |
| stSUI | 2 | 6% |
| afSUI | 3 | 6% |
| vSui | 4 | 6% |
| SPRING\_SUI | 5 | 6% |
| USDY | 6 | 8% |
| USDY | 7 | 11% |
| SUI | 8 | 6% |
| SUI | 9 | 6% |
| USDsui | 10 | 6% |
| USDC | 11 | 6% |
| USDsui | 12 | 3.08% |
| USDC | 12 | 3.08% |
| USDT | 12 | 3.08% |
***
#### Ethena Market
| Asset | E-Mode Group | Liquidation Penalty |
| --------- | ------------ | ------------------- |
| SUI\_USDE | 0 | 14% |
***
#### Matrix Gold Market
| Asset | E-Mode Group | Liquidation Penalty |
| ----- | ------------ | ------------------- |
| XAUM | 0 | 10% |
***
#### Ember Market
| Asset | E-Mode Group | Liquidation Penalty |
| ------ | ------------ | ------------------- |
| SUI | 0 | 10% |
| USDC | 0 | 10% |
| ESUI | 1 | 6% |
| ETHIRD | 2 | 6% |
| EEARN | 3 | 6% |
***
#### AltCoin Market
| Asset | E-Mode Group | Liquidation Penalty |
| ----- | ------------ | ------------------- |
| DEEP | 0 | 16% |
| WAL | 0 | 16% |
| USDC | 0 | 10% |
| SUI | 0 | 10% |
***
---
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