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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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On this page
  • What are the key ratios used to determine borrowing limits?
  • What is “liquidation value” and how is it calculated?
  • How is the Debt-to-Liquidation (DTL) ratio calculated?
  • If I try to borrow and withdraw 10,000 FIL, and borrow from sealing, how much can I still borrow from GLIF?
  • Key Takeaways:
  • Example:
  1. TROUBLESHOOTING
  2. FAQ
  3. FAQ for Storage Providers

Key Financial Ratio

PreviousBorrow and Withdraw FILNextPayment

Last updated 8 months ago

What are the key ratios used to determine borrowing limits?

ratio must be less than 75%. Read for more details.

What is “liquidation value” and how is it calculated?

is the estimated worth of an SP's miners if their sectors were terminated, accounting for penalties and other losses. It is computed as:

LiquidationValue=MinerBalance−MinerMaxTerminationPenaltyLiquidationValue = MinerBalance - MinerMaxTerminationPenaltyLiquidationValue=MinerBalance−MinerMaxTerminationPenalty
MinerBalance=AvailableBalance+VestingBalance+InitialPledgeMinerBalance = AvailableBalance + VestingBalance + InitialPledgeMinerBalance=AvailableBalance+VestingBalance+InitialPledge

How is the Debt-to-Liquidation (DTL) ratio calculated?

is computed as:

DTL=Debt/LiquidationValueDTL = Debt / LiquidationValueDTL=Debt/LiquidationValue

If I try to borrow and withdraw 10,000 FIL, and borrow from sealing, how much can I still borrow from GLIF?

DTL=Debt/LiquidationValueDTL = Debt / LiquidationValueDTL=Debt/LiquidationValue

Let's take a look at how borrowing for sealing and withdrawing affect your DTL ratio:

  1. Borrowing FIL for sealing:

    • When you borrow FIL for sealing, the borrowed amount is added to your Agent.

    • You keep the FIL within your Agent and its miners.

    • Both your debt and liquidation value increase by the borrowed amount.

Pledged FIL from sealing incurs a hypothetical "termination fee" - which is the amount of FIL that would be lost in a liquidation scenario. As a result, using borrowed FIL for sealing slightly decreases the Agent's liquidation value. However, the Agent's liquidation value increases every time one of its miners' earns a block reward.

  1. Borrow FIL for withdrawing:

    • When you borrow FIL for withdrawing, the borrowed amount is removed from your Agent.

    • Your debt increases, but your liquidation value decreases by the withdrawn amount.

Your DTL will gradually rise as interest accumulates.

Key Takeaways:

Borrowing FIL for sealing on one of your Agent's miners allows you to get higher leverage - withdrawing FIL from your Agent significantly increases its DTL. Always remember to keep your DTL under 75%.

Example:

Let's imagine the following scenario:

  • Agent Debt: 100 FIL

  • Agent Liquidation Value: 200 FIL

  • DTL: 50%

If you borrow 100 FIL:

  • New Agent Debt: 200 FIL

  • New Agent Liquidation Value: 300 FIL

  • New DTL: 66% ✅

Now, if you use that 100 FIL for sealing, your DTL remains at 66%, allowing you to borrow more while the DTL is within 75%.

However, if you decide to withdraw 100 FIL instead:

  • Agent Debt: 200 FIL

  • Agent Liquidation Value: 200 FIL

  • DTL: 100% ❌

In this case, you cannot withdraw 100 FIL because the DTL is above 75%.

As you can see, withdrawing the FIL increases your DTL ratio much faster, which can limit your borrowing capacity.

To determine how much you can borrow from GLIF, you need to understand the . DTL ratio must be less than 75%. Read for more details. The DTL ratio is calculated as:

For detailed uses of borrowed FIL, read for more details.

Debt-to-Liquidation (DTL)
here
Liquidation value
DTL
Debt-to-Liquidation (DTL) ratio
here
here