> For the complete documentation index, see [llms.txt](https://docs.arkis.xyz/home/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.arkis.xyz/home/concepts/stress-tested-value.md).

# Stress-Tested Value

Each [Whitelisted asset](/home/concepts/whitelisted-assets.md) in a [Liquidity Pool](/home/concepts/market.md) 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:

<figure><img src="/files/umvLuYKPl5cAwTy4m1bj" alt=""><figcaption></figcaption></figure>

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