GLIF Docs
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  • Introduction
    • Quick Guide
    • GLIF Overview
    • Protocol Users
  • For Liquidity Providers
    • Benefits for token holders
    • GLIF Reward Mechanism - iFIL
    • Exit - Withdraw FIL
    • Asset Security
    • Risks
  • For Storage Providers
    • Benefits for Storage Providers
    • SP Liquidation Values
    • Borrowing Limits & DTL
    • Uses of Borrowed FIL
    • Liquidations
    • Borrowing Cost
    • Manage Miner Actors with Agents
    • Guarantor Model
  • Developer Resources
    • GLIF SDK
    • GLIF CLI
    • Deployed Contracts
  • TROUBLESHOOTING
    • FAQ
      • FAQ for Liquidity Providers
        • About GLIF
        • Deposit FIL
        • Withdraw FIL
        • Risk
        • Wallet Connection
        • GLIF Points
        • Miscellaneous
      • FAQ for Storage Providers
        • Borrow and Withdraw FIL
        • Key Financial Ratio
        • Payment
        • Liquidation
        • Agents
        • Transaction Issue
    • TUTORIALS
      • For Token Holders
        • Wallets
          • How to find your corresponding 0x/f410 wallet address
          • How to obtain a Ledger wallet as the intermediary wallet
          • How to obtain a burner wallet as the intermediary wallet
          • How to obtain a FilSnap wallet as the intermediary wallet
          • How to connect your wallet to Filecoin Mainnet
          • How to transfer FIL from a 0x address to an f1 address
          • How to create a multisig wallet on GLIF
        • Using the Pool
          • Deposit FIL into GLIF to earn rewards
          • How to deposit Filecoin from a hardware wallet with GLIF
          • How to deposit FIL to GLIF using multisig wallet
          • Withdraw FIL from GLIF
          • How to withdraw FIL from GLIF using a multisig wallet
        • Transfer FIL to/from exchanges
          • Transfer FIL between exchange and GLIF
          • Binance
            • Transfer FIL from Binance to GLIF
            • Transfer FIL from GLIF to Binance
          • MEXC
            • Transfer FIL from MEXC to GLIF
            • Transfer FIL from GLIF to MEXC
      • For Storage Providers
        • GLIF Agent Website Tutorial Part I— Preparation Setup
        • GLIF Agent Website Tutorial Part II — Create your Agent
        • GLIF Agent Website Tutorial Part III — Add Your Miner
        • How to withdraw FIL from the agent to an exchange at GLIF
      • How to Claim $GLF Airdrop
    • Glossary
    • Contact Us
  • Governance
    • Governance
    • Delegation
    • Proposals (GIPs)
    • Voting Process
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  • Understanding liquidation values
  • Recovery rates
  1. For Storage Providers

SP Liquidation Values

Liquidation values are used within GLIF to determine borrow limits and liquidations

Understanding liquidation values

Every Filecoin Miner Actor owned by a Storage Provider has an associated liquidation value. The liquidation value can be computed as:

LiquidationValue=MinerBalance−MinerMaxTerminationFeeLiquidationValue = MinerBalance - MinerMaxTerminationFeeLiquidationValue=MinerBalance−MinerMaxTerminationFee
MinerBalance=AvailableBalance+VestingBalance+InitialPledgeMinerBalance = AvailableBalance + VestingBalance + InitialPledgeMinerBalance=AvailableBalance+VestingBalance+InitialPledge

Using an example, imagine the following hypothetical miner:

  • Available balance: 10 FIL

  • Pledged balance: 100 FIL

  • Vesting balance: 20 FIL

  • Maximum termination fee: 10 FIL

The total balance of this miner is 130 FIL, and its maximum termination fee 10 FIL. Therefore, it's liquidation value of this miner would be 120 FIL.

Storage Providers must keep close track of their liquidation value to determine borrowing limits and avoid liquidations. Find out any miner's liquidation value using our calculator here. (coming soon)

Recovery rates

The recovery rate describes the portion of an SP's pledged FIL that would be recovered in a liquidation event. Recovery rate is computed as:

RecoveryRate=(PledgeBalance−MaxTerminationFee)/PledgeBalanceRecoveryRate = (PledgeBalance - MaxTerminationFee) / PledgeBalanceRecoveryRate=(PledgeBalance−MaxTerminationFee)/PledgeBalance

Using an example, imagine the following hypothetical miner:

  • Pledged balance: 100 FIL

  • Maximum termination fee: 10 FIL

This miner's recovery rate would be 90% - GLIF would expect to recover 90 FIL after liquidating this miner.

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Last updated 8 months ago