PredMart Risk Parameters — LTV, Health Factor & Borrow Caps
Understand PredMart risk parameters — the dynamic 7-anchor LTV curve, liquidation threshold, health factor calculation, per-token borrow caps, and how they affect leverage.
<p>PredMart uses a dynamic 7-anchor LTV curve that adjusts borrowing limits based on collateral price — from 2% LTV at $0.00 to 75% at $1.00. Higher LTV means higher maximum leverage. The liquidation threshold is LTV plus a 10% buffer. Health factor = (collateral value x liquidation threshold) / debt. A per-token cap of 5% of the pool and a per-market liquidity-based cap together prevent concentration in any single market.</p>