Borrowing Limits & DTL

How much you can borrow from GLIF is decided by the debt-to-liquidation ratio

Use the calculator

If you’re interested in learning about how much a specific Miner ID can borrow, you can visit the GLIF borrowing calculator here. (coming soon)

Debt-to-liquidation (DTL) ratio

Borrowing limits on GLIF are determined by the "debt-to-liquidation" value ratio, or "DTL" for short.

Computing DTL requires two other metrics:

1. Debt - the SP's outstanding principal plus any unpaid interest

2. Liquidation value - the SP's "collateral value" (defined here)

$$DTL = Debt / LiquidationValue$$

$$Debt = Principal + Interest$$

$$LiquidationValue = MinerBalance - MinerMaxTerminationPenalty$$

DTL < 100% means that, in a liquidation scenario, GLIF will recover all principal and interest owed to GLIF.

Borrow limit: DTL > 75%

• To borrow from GLIF, the maximum DTL ratio is 75% which means an SP's debt cannot exceed 75% of its liquidation value. If the Storage Provider’s DTL exceeds 75%, all borrowing and withdrawing of rewards is disabled until the Storage Provider returns to <75% DTL.

If a Storage Provider's DTL ratio goes above 75%, it is not immediately in danger of liquidation. If a Storage Provider's DTL goes above 85%, it is in danger of liquidation. It is highly recommended to contact the GLIF team immediately if any SP's DTL ratio exceeds 75%.