Assets & Risk Parameters
Each asset on AlphaFi Lend has unique risk parameters that determine how it can be used as collateral and borrowed. These parameters reflect the asset's volatility, liquidity, and overall risk profile
Core Risk Parameters
Loan-to-Value (LTV)
The LTV determines the maximum amount you can borrow against an asset.
85%
Borrow up to 85% of collateral value
80%
Borrow up to 80% of collateral value
60%
Borrow up to 60% of collateral value
Higher LTV = More capital efficient, used for stable/liquid assets
Lower LTV = More conservative, used for volatile/newer assets
Why do assets have different LTV?
LTV reflects risk assessment:
Stablecoins (USDC, suiUSDT) — 85% LTV, minimal price volatility
Major assets (SUI, stSUI) — 85% LTV, high liquidity and established markets
Wrapped BTC variants — 80% LTV, bridge/wrapper considerations
Newer or volatile assets — 45-60% LTV, higher price risk
Lower LTV provides more buffer before liquidation if prices drop rapidly.
Liquidation Threshold
The liquidation threshold (LT) is the point at which your position becomes eligible for liquidation. This is typically set at 85-90% for most assets — generally 5% above the maximum LTV.
The gap between LTV and liquidation threshold provides a safety buffer:
At 80% LTV: LT is 85%, giving a 5% buffer before liquidation
At 85% LTV: LT is 90%, giving a 5% buffer before liquidation
Once your position exceeds the LTV ratio but remains below the liquidation threshold, you cannot withdraw collateral. This restricted zone acts as a warning period — your position is unhealthy, but not yet subject to liquidation.
Supply and Borrow Caps
Caps limit the total amount of each asset that can be supplied or borrowed:
Supply Cap — The maximum amount that can be deposited for an asset
Borrow Cap — The maximum amount that can be borrowed for an asset
Caps protect the protocol from:
Excessive concentration in a single asset
Liquidity risks during market stress
Oracle manipulation attacks
You can view current utilization against caps on each asset's detail page.
Asset Categories
Main Markets
The primary markets include established assets with standard risk parameters:
SUI and liquid staking derivatives (stSUI)
Major stablecoins (USDC, suiUSDT)
Wrapped Bitcoin variants
Other established tokens
Isolated Markets
Isolated markets contain assets that require additional risk management:
Newer tokens with less price history
Assets with lower liquidity
Tokens with additional smart contract risk
Assets in isolated markets may have:
Lower LTVs
Stricter borrow caps
Limited collateral usage
Ember Markets
Ember markets contain yield-bearing vault tokens from Ember Protocol.
When you deposit assets into Ember vaults, you receive a tokenized representation (e.g., eSUI) that accrues yield. These tokens can then be deposited into AlphaFi Lend and used as collateral, similar to how you would use the underlying asset like SUI.
Retired Markets
Retired markets contain deprecated assets. These are closed to new supplies and borrows but existing positions can be managed and closed.
Price Oracles
AlphaFi Lend uses Pyth price feeds to determine asset values across the protocol. These prices drive all core calculations — collateral valuations, borrow limits, liquidation triggers, and health factors.
How Oracle Prices Are Used
Collateral value
Determines the USD value of your supplied assets
Borrow limit
Collateral value × LTV, derived from oracle prices
Liquidation check
Compares debt value to collateral value in real time
Health factor
Based on the ratio of collateral to debt at current prices
Pyth Network
Pyth provides high-frequency price updates sourced from institutional market data providers. Key characteristics:
Pull-based updates — Prices are updated on-chain when needed, reducing unnecessary transactions
Sub-second latency — Price data reflects near real-time market conditions
Multiple data sources — Each feed aggregates prices from numerous providers to reduce manipulation risk
Pyth is purpose-built for DeFi price feeds on high-performance chains like Sui. Its pull-based model aligns with Sui's architecture, delivering fresh prices without the overhead of constant on-chain updates. The breadth of institutional data sources provides resilience against single-source failures or manipulation.
Price Staleness
If an oracle price becomes stale or unavailable, the protocol may restrict operations on the affected asset to protect users from acting on outdated valuations.
Additional Parameters
Spread Fee
The spread between supply and borrow rates (typically 15%). This margin covers:
Protocol reserves
Risk buffer
Operational costs
Borrow Weight
A multiplier applied to borrowed amounts for risk calculations. A borrow weight of 1 means the asset is counted at face value.
Checking Asset Parameters
To view complete parameters for any asset:
Click on the asset row in the markets table
Review the "Reserve Status & Configuration" section
Key metrics displayed:
Maximum LTV
Liquidation Threshold
Close Factor
Current utilization
Supply and borrow caps
Historical borrow and supply APRs
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