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How Is the Collateralization Ratio Calculated?

(Value of Collateral / Value of Stablecoin Debt) 100%. It must stay above the protocol's minimum threshold.
Greeks.Live04.11.25

How Is the Collateralization Ratio Calculated?

The collateralization ratio is calculated by dividing the current market value of the collateral locked in the smart contract by the total value of the stablecoin debt issued against that collateral. For example, if $150 of ETH collateral backs $100 of stablecoin, the ratio is 150/100, or 150%.

The ratio must be maintained above a minimum threshold set by the protocol.

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