> For the complete documentation index, see [llms.txt](https://docs.orchai.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.orchai.io/orchai-money-market/oraichain-market/protocol-parameters.md).

# Protocol Parameters

### **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The percentage of the borrower's interest accrues to Orchai protocol and can be withdrawn through governance.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](/orchai-money-market/oraichain-market/borrowing.md#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](/orchai-money-market/oraichain-market/borrowing.md#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](/orchai-money-market/oraichain-market/borrowing.md#borrowing-interest-rate) and [Lending Interest Rate](/orchai-money-market/oraichain-market/lending.md#lending-interest-rate) can be illustrated in the following chart:

<figure><img src="/files/alX7f4vr7rRv32pg5Iil" alt=""><figcaption><p>Interest Rate Model</p></figcaption></figure>


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