Calculating Account Risk: Examples

Case1) Borrow $40 USDT against $100 TON

• Parameter

  • [Asset] Risk Factor : TON 40%, USDT 0%

  • [Market] MaxRiskRatio : 80%, MaxLeverage : 300%

  Asset	Supply	Borrow	Net Asset (Supply-Borrow)	Risk Value (RiskFactor * abs[NetAsset]
  TON (A)	$100	-	$100	$40
  USDT (B)	-	$40	-$40	$0
  Total Value (A + B)	$100	$40	$60	$40

• Risk Assessment : Both risk metrics (Risk Ratio and Leverage) are within the market’s MaxRiskRatio and MaxLeverage limits

$$RiskRatio = \frac{total \ risk \ value}{net \ asset} = \frac{\$ 40}{\$ 60} \approx 66.7\%$$

$$Leverage = \frac{total \ supply \ value}{net \ asset} = \frac{\$ 100}{\$ 60} \approx 166.7\%$$

case1-1) Borrow +$20 USDT

Asset	Supply	Borrow	Net Asset	Risk Value
TON (A)	$100	-	$100	$40
USDT (B)	-	$40+$20	-$60	$0
Total Value (A + B)	$100	$60	$40	$40

• Risk Assessment : This loan request is rejected because the resulting Risk Ratio would exceed MaxRiskRatio, even though the Leverage remains acceptable

$$RiskRatio = \frac{\$ 40}{\color{blue}{\$ 40}} = \color{red}{100\%}$$

$$Leverage = \frac{\$ 100}{\$ 40} = \color{blue}{250\%}$$

case1-2) Borrow +$20 TON

Asset	Supply	Borrow	Net Asset	Risk Value
TON (A)	$100	+$20	$80	$32
USDT (B)	-	$40	-$40	$0
Total Value (A + B)	$100	$60	$40	$32

• Risk Assessment : Both risk metrics (Risk Ratio and Leverage) are within the market’s MaxRiskRatio and MaxLeverage limits

$$RiskRatio = \frac{\$ 32}{\$ 40} = \color{blue}{80\%}$$

$$Leverage = \frac{\$ 100}{\$ 40} = \color{blue}{250\%}$$

Case2) Borrow $60 TON against $100 tsTON

• Parameter

  • [Asset] Risk Factor : TON 40%, USDT 0%, tsTON 5%

  • [Market] MaxRiskRatio : 80%, MaxLeverage : 300%

  Asset	Supply	Borrow	Net Asset (Supply-Borrow)	Risk Value (RiskFactor * abs[NetAsset]
  TON (A = a1 + a2)	$100	$60	$40	$16
  TON (a1)	-	$60	-	-
  tsTON (a2)	$100	-	-	$5*
  USDT (B)	-	-	-	-
  Total Value (A + B)	$100	$60	$40	$21

  • tsTON introduces an additional DeFi-specific risk layer beyond TON’s underlying asset risk, increasing the account’s overall risk values

• Risk Assessment : Both risk metrics (Risk Ratio and Leverage) are within the market’s MaxRiskRatio and MaxLeverage limits

$$RiskRatio = \frac{total \ risk \ value}{net \ asset} = \frac{\$ 21}{\$ 40} = 52.5\%$$

$$Leverage = \frac{total \ supply \ value}{net \ asset} = \frac{\$ 100}{\$ 40}= 250\%$$

case2-1) Borrow +$10 TON

Asset	Supply	Borrow	Net Asset (Supply-Borrow)	Risk Value (RiskFactor * abs[NetAsset]
TON (A = a1 + a2)	$100	$70	$30	$12
TON (a1)	-	$60+$10	-	-
tsTON (a2)	$100	-	-	$5
USDT (B)	-	-	-	-
Total Value (A + B)	$100	$70	$30	$17

• Risk Assessment : A further loan request is rejected because the resulting Leverage would exceed MaxLeverage, even though the Risk Ratio remains acceptable.

$$RiskRatio = \frac{\$ 17}{\$ 30} \approx \color{blue}{56.7\%}$$

$$Leverage = \frac{\$ 100}{\$ 30} \approx \color{red}{333\%}$$