Stress-Tested Value

Each Whitelisted asset inside 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

• On-chain 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.