> For the complete documentation index, see [llms.txt](https://docs.affluent.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.affluent.org/factorial-legacy/account-risk/accessing-simple-borrowings.md).

# Accessing Simple Borrowings

### Case1) Borrow $40 USDT against $100 TON

* parameter
  * Risk Factor : TON - 40%
  * MaxRiskRatio : 80%, MaxLeverage : 300%

| Asset               | Supply | Borrow | Net Asset | Risk Value |
| ------------------- | ------ | ------ | --------- | ---------- |
| TON (B = b1)        | $100   | -      | $100      | $40        |
| Native (b1)         | $100   | -      | -         | -          |
| USDT (C = c1)       | -      | $40    | -$40      | $0         |
| Native (c1)         | -      | $40    | -         | -          |
| Total Value (B + C) | $100   | $40    | $60       | $40        |

* Risk status
  * Risk ratio = total risk value / net asset = $40 / $60 = 66.7% ≤ MaxRiskRatio ⇒ OK
  * Leverage = total supply / net asset = $100 / $60 = 167% ≤ MaxLeverage ⇒ OK

#### case1-1) Borrow +$20 USDT

| Asset               | Supply | Borrow                                    | Net Asset | Risk Value |
| ------------------- | ------ | ----------------------------------------- | --------- | ---------- |
| TON (B = b1)        | $100   | -                                         | $100      | $40        |
| Native (b1)         | $100   | -                                         | -         | -          |
| USDT (C = c1)       | -      | $60                                       | -$60      | $0         |
| Native (c1)         | -      | $40 <mark style="color:blue;">+$20</mark> | -         | -          |
| Total Value (B + C) | $100   | $60                                       | $40       | $40        |

* Risk status
  * Risk ratio = $40 / $40 = <mark style="color:red;">100% > MaxRiskRatio → Fail</mark>
  * Leverage = $100 / $40 = 250% ≤ MaxLeverage

#### case1-2) Borrow +$20 TON

| Asset               | Supply | Borrow                                | Net Asset | Risk Value |
| ------------------- | ------ | ------------------------------------- | --------- | ---------- |
| TON (B = b1)        | $100   | $20                                   | $80       | $32        |
| Native (b1)         | $100   | <mark style="color:blue;">+$20</mark> | -         | -          |
| USDT (C = c1)       | -      | $40                                   | -$40      | $0         |
| Native (c1)         | -      | $40                                   | -         | -          |
| Total Value (B + C) | $100   | $60                                   | $40       | $32        |

* Risk status
  * Risk ratio = $32 / $40 = 80% ≤ MaxRiskRatio ⇒ OK
  * Leverage = $100 / $40 = 250% ≤ MaxLeverage ⇒ OK

### Case2) Borrow $60 TON against $100 tsTON

* parameter
  * Risk Factor : TON - 40%, USDT - 0%, <mark style="color:orange;">LST - 5%</mark>
  * MaxRiskRatio : 80%, MaxLeverage : 300%

| Asset                         | Supply   | Borrow  | Net Asset | Risk Value |
| ----------------------------- | -------- | ------- | --------- | ---------- |
| **DeFi position (A = a1+a2)** | -        | -       | -         | -          |
| DEX (a1)                      | -        | -       | -         | -          |
| Liquid Staking (a2)           | $100     | -       | $100      | $5         |
| **TON (B = b1 + b2)**         | **$100** | $60     | **$40**   | **$16**    |
| Native (b1)                   | -        | $60     | -         | -          |
| DeFi position (b2, from A)    | $100     | -       | -         | -          |
| **USDT (C = c1 + c2)**        | -        | -       |           | **$0**     |
| Native (c1)                   | -        | -       | -         | -          |
| DeFi position (c2, from A)    | -        | -       | -         | -          |
| **Total Value (B + C)**       | **$100** | **$60** | **$40**   | **$21**    |

* Risk status
  * Risk ratio = $21 / $40 = 52.5% ≤ MaxRiskRatio ⇒ OK
  * Leverage = $100 / $40 = 250% ≤ MaxLeverage ⇒ OK

#### case2-1) Borrow +$20 TON

| Asset                         | Supply   | Borrow  | Net Asset | Risk Value |
| ----------------------------- | -------- | ------- | --------- | ---------- |
| **DeFi position (A = a1+a2)** | -        | -       | -         | -          |
| DEX (a1)                      | -        | -       | -         | -          |
| Liquid Staking (a2)           | $100     | -       | $100      | $5         |
| **TON (B = b1 + b2)**         | **$100** | $80     | **$20**   | **$8**     |
| Native (b1)                   | -        | $60+$20 | -         | -          |
| DeFi position (b2, from A)    | $100     | -       | -         | -          |
| **USDT (C = c1 + c2)**        |          |         |           | **$0**     |
| Native (c1)                   |          |         | -         | -          |
| DeFi position (c2, from A)    |          |         | -         | -          |
| **Total Value (B + C)**       | **$100** | **$80** | **$20**   | **$13**    |

* Risk status
  * Risk ratio = $13 / $20 = 65% ≤ MaxRiskRatio ⇒ OK
  * Leverage = $100 / $20 = <mark style="color:red;">500% > MaxLeverage → Fail</mark>