Key Financial Ratio
Last updated
Last updated
ratio must be less than 75%. Read for more details.
is the estimated worth of an SP's miners if their sectors were terminated, accounting for penalties and other losses. It is computed as:
is computed as:
Let's take a look at how borrowing for sealing and withdrawing affect your DTL ratio:
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.
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Your debt increases, but your liquidation value decreases by the withdrawn amount.
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%.
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.