How to understand your risk value?

Knowledge Base General
1

Risk value is an indicator of the health of the current portfolio. Collaterals will be liquidated when the risk value reaches 100.

Formula: Risk value = Total borrow ÷ Borrow limit x 100

Our recommendations for users at different levels of risk are as follows:

Range Levels of risk Recommendations
0-35 Low Risk Healthy portfolio, eligible for loans.
35-60 Medium Risk Healthy portfolio overall, eligible for extra loan, but with caution.
60-80 High Risk Portfolio faces risk of liquidation, and you are advised to add collateral or pay off part of your loans.
80-100 Extremely High Risk Collaterals are about to be liquidated, and you are advised to add collateral or pay off part of your loans.
2

what is users at different levels of risk like now?

3

When you have a loan on JustLend, you can check your risk value which is a score on the home page. According to the table above, you can know what levels of risk your account status is and what action to take. For example, if the score is higher than 80, which means your collaterals are about to be liquidated. To avoid the loss, you may need add collateral or pay off part of your loans.

For more details, check our official docs: Risk Overview - JustLend DAO Docs