Protocol Parameters

Collateral Factor, Reserve Factor

Loan To Value (LTV)

The maximum that can be borrowed on a particular asset.

Collateral asset	LTV
sORAI	60%
scORAI	60%

Reserve Factor

The percentage of the borrower's interest accrues to Orchai protocol and can be withdrawn through governance.

Asset	Reserve Factor
USDT	10%

Interest Rate Model

Orchai's interest rate model dynamically adjusts the interest rates of each asset market depending on the utilization rate. A high ratio would incur higher interest payments from borrowers, and consequently higher interest payments to suppliers, thereby encouraging suppliers to add more assets to the protocol and ensuring healthy levels of available liquidity.

Interest Rate Model is based on the following parameter:

Parameter	Value
$U_{optimal}$	80%
$B_0$	2%
$B_{slope1}$	8%
$B_{slope2}$	40%

Borrowing Interest Rate and Lending Interest Rate can be illustrated in the following chart:

Interest Rate Model