Borrowing Limits & DTL

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

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 > 75-90%

• To borrow from GLIF, the maximum DTL ratio ranges from 75% to 90%, depending on whether the Storage Provider joins the GLIF+ program.

  • If the Storage Provider does not join the GLIF+ program, the maximum DTL is 75%, meaning their debt cannot exceed 75% of their liquidation value.

  • Storage Providers who join the GLIF+ program as Gold Card holders can borrow up to a 90% DTL. Details of GLIF+ program are shown in the Tiers and Limits table.

• If a Storage Provider's DTL ratio goes above the limit, it is not immediately in danger of liquidation. However, they are eligible to be put on "administration" and all borrowing and withdrawals of rewards are disabled until the DTL returns to below the limit.

• If a Storage Provider's DTL goes above 92%, it is in danger of liquidation. It is highly recommended to contact the GLIF team immediately if any SP's DTL ratio exceeds the limit.

This graph illustrates the situation for SPs who did not join the GLIF+ program. For those who joined the GLIF+ program, please refer to the tier and limit table for details.