Market Risk

We take a holistic and data-driven approach in determining your LTV ratio, rather than assigning one per each asset pair

One of the critical benefits of Superposition’s dynamic margin is its ability to respond quickly and accurately to market conditions. In a world where cryptocurrency prices fluctuate wildly from hour to hour, having a real-time model that can keep up with these changes is crucial for lenders looking to manage their risks effectively.

TLDR

Superposition achieves dynamic margin by building on top of Concordia's real time market risk engine. Therefore:

• Superposition doesn't have a static LTV ratio assigned to each asset pair

• Your portfolio will be assessed holistically to determine how much you can borrow for any particular asset

• Correlation between the collateral and debt is always considered, i.e. Superposition is always in High Efficiency Mode (E-mode).

• Superposition can react faster to systemic risk events, such as stable coin de-peg, over-concentrated collaterals, liquid staking asset price divergent...to name a few.

For Details

Visit https://docs.concordia.systems/ to learn about how the Concordia Risk Engine supports the DeFi ecosystem to combat market risk and prevent systemic failure.