Stress-Tested Value

Each Whitelisted asset in a Liquidity Pool is assigned a Stress-Tested Value (STV) — a configurable parameter expressing the discounted value of that asset.

This value is:

  • Defined per asset, per pool

  • Used to conservatively estimate the borrowable amount of capital backed by that asset

  • Serves as a functional proxy for LTV, but goes beyond by incorporating asset-specific risk dynamics

For example, a wETH asset with a Stress-Tested Value of 65% means:

"In a portfolio stress scenario, Arkis assumes only 65% of the current market value of wETH can be reliably used as collateral."

This accounts for:

  • Historical volatility

  • Onchain liquidity (slippage upon liquidation)

  • Oracle risks

  • Protocol-specific behaviors (e.g. LP token redemption delay)

A Margin Account may contain multiple whitelisted assets. Each of them contributes to the Portfolio Stress-Tested Value depending on:

  • Their current balance

  • The price feed (via oracle)

  • The pool-configured STV

Mathematically:

This value represents a conservatively estimated liquidation value of the account under market stress conditions.

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