Reference

Glossary

Every term used across this site, in plain language, with the number that matters attached.

If a word on the site is doing work you cannot see, it is defined here.

The things you hold#

Stock tokenA token that tracks a share price: An ERC-20 token on Robinhood Chain that tracks the price of a real equity. Legally a tokenized debt security giving economic exposure — not registered ownership of the share, and no voting rights.
USDGThe dollar you borrow: A dollar stablecoin issued by Paxos, pegged 1:1 and backed by reserves. CredX borrows and lends it but never issues it.
sUSDGYour receipt for supplied USDG: The token you receive when you supply USDG. Its value grows as interest accrues, and it redeems for USDG plus interest whenever pool liquidity allows.
MultiplierHow dividends and splits reach you: Robinhood reflects dividends and stock splits by increasing a multiplier on the token rather than your balance. CredX reads the multiplier-adjusted value, so collateral keeps compounding while it backs a loan.
Collateral vaultWhere your tokens sit: The contract holding deposited stock tokens. Non-custodial: only you can withdraw, and only the liquidation engine can act on it, under published conditions.

The numbers on your position#

LTV — loan-to-valueHow much you may borrow: The fraction of your collateral’s value you may borrow against. 65% LTV on $10,000 means a $6,500 limit. The remaining 35% is the buffer that absorbs price moves.
Effective LTVYour actual granted LTV: Value-weighted base LTV, plus any diversification credit, multiplied by the current market-hours haircut. This is the number that builds your limit.
Liquidation thresholdWhere trouble starts: The collateral-to-debt ratio at which your health factor reaches 1. Always higher than LTV; the gap between them is your room to be wrong.
Health factorThe one number to watch: (Collateral value × weighted liquidation threshold) ÷ debt. Above 1 you are solvent; below 1 you can be liquidated. Full page.
Credit limitWhat the line is worth: Collateral value × effective LTV. A revolving limit, not a loan — it costs nothing until you draw on it.
Liquidation bufferHow far the market can fall: The percentage drop in your collateral basket that would take your health factor to 1. Equal to 1 − (1 ÷ health factor).
Net carryYield minus cost: Your basket’s dividend yield minus the interest you pay, expressed against collateral value. Positive means the position pays for itself.

How the market prices things#

UtilisationHow busy the pool is: Total borrowed ÷ total supplied. It is the only input to the interest rate — nobody sets rates by hand.
KinkWhere the rate turns steep: The 90% utilisation point. Below it the borrow rate rises gently to 5.5%; above it, steeply toward 65.5%, which pulls liquidity back.
Reserve factorThe protocol's cut: 15% of borrower interest, retained as a buffer that absorbs bad debt before lenders do. It is also the protocol’s main revenue.
Fixed-term drawA locked rate: A 7, 30 or 90-day borrow at a rate fixed for the whole period, at a duration premium over the variable rate. Closeable early with no penalty.
Origination feeThe cost of locking a rate: 5 to 20 basis points, charged only on fixed-term draws. Variable-rate draws have none.
Correlation (ρ)How much two assets move together: Between 0 and 1. The risk engine uses it to compute basket volatility, which is lower than the weighted average of its parts — and that difference becomes extra borrowing power.
Volatility (σ)How much an asset moves: Annualised standard deviation of returns. A broad ETF sits near 16%; a volatile single stock can reach 55%. It is the primary driver of LTV.

When things go wrong#

Smart DeleveragingThe warning before liquidation: At health factor 1.10, the protocol sells the smallest slice that restores 1.35 and repays that debt for you. 0.30% swap fee instead of a 5–8% liquidator bonus.
Self-liquidationDeleveraging on demand: The same mechanism, triggered manually at any health factor. Same 0.30% fee, no liquidator, no penalty.
Close factorThe cap on one liquidation: 50%. A single liquidation call may close at most half your debt, so a momentary dip below 1 cannot wipe the whole position.
Liquidator bonusWhat clearing your position pays: The 5–8% discount at which a liquidator receives seized collateral. It scales with the asset’s volatility and is paid out of your collateral.
Bad debtThe failure mode that matters: Debt no longer covered by collateral, usually after an overnight gap. The reserve absorbs it first; if exhausted, lenders take the loss.
HeartbeatHow stale a price may get: The maximum time a Chainlink feed may go without an update — 900s to 3600s depending on the asset. Past it, the feed is stale and new borrows against that asset stop.
Circuit breakerProtection against a bad print: A price move beyond the deviation band inside one block halts liquidations for that asset until two independent updates agree.
Market-hours haircutTighter LTV when the market is shut: A multiplier on LTV that falls from ×1.00 when the market is open to ×0.82 over a weekend, because gap risk rises with the distance to the next real price.

Still unclear?#

The FAQ answers the questions people actually ask before depositing, and How it works follows a single position from deposit to repayment with every figure shown.