APY: This stands for Annual Percentage Yield, which is a standardized way to express an interest rate based on a one-year compounding period.
Deposit APY: This is the variable interest rate you earn when you lend assets to Metal X Lending.
Variable borrow APY: This is the variable interest rate you pay when borrowing Tokens. Generally, higher utilization leads to a higher APY, while lower utilization results in a lower APY.
Borrow amount: This is the total amount you plan to borrow.
Max borrow: This indicates the highest amount you can borrow.
Max borrow to deposits: This is the maximum amount you can borrow against your deposits. For instance, if you deposit $100 in BTC, you can borrow up to $70 worth of any asset from it. This is often referred to as loan to value (LTV).
Deposit amount: This is how much you want to deposit, and it shouldn’t exceed what you have in your wallet.
Max deposit: This is the highest amount you can deposit, which corresponds to what you have available in your wallet.
Withdraw amount: This is the total amount you wish to withdraw.
Max withdraw: This indicates the maximum amount you can withdraw.
Repay amount: This is the amount you intend to repay.
Repay max: This is the total amount you can repay. If you pay more than what you owe, any extra will be returned automatically.
Collateral: In crypto-backed lending, collateral is the cryptocurrency asset you pledge to ensure the loan will be repaid. Once you fully repay the loan, the collateral is returned. In traditional banking, a common example is a mortgage, where the financed asset (like a house) secures the loan. If the loan isn't repaid on time, the asset can be repossessed.
Max collateral: This is the highest amount you can use as collateral.
Utilization rate: This is the percentage of deposits that are currently borrowed by all users in the market.
Liquidation: If your Loan health drops to 0%, your loan is considered insolvent and may be liquidated. You can learn more about liquidations here.
Liquidation fee: This is the reward liquidators receive for liquidating loan collateral. Currently, liquidators earn a 10% bonus on the collateral, so if they liquidate $100 of insolvent debt, they will receive about $110 of the collateral.
Loan Health: This reflects the risk level based on your outstanding loan balance and the collateral you've deposited. You can keep track of your loans on the portfolio page and make repayments to improve your Loan Health and avoid liquidation. When your Loan health reaches 0%, your loan is considered insolvent and may be liquidated. For more information on liquidations, click here.
Loan Duration: Loans are perpetual, and as long as your Loan health stays above 0%, you won't face liquidation.