# Supported Collaterals

Collateral factors determine the borrow limit of an account. Established and highly liquid assets will have higher collateral factors, while more illiquid assets will have lower collateral factors. To determine the maximum amount that can be borrowed, users should multiply the Collateral Factor by the safety LTV threshold to determine the maximum position that will be safe from liquidation. These collateral factors, as well as the supported collaterals can be updated by community proposal.

For example, if you are using 1000 USDT to borrow WBTC (AA Tier), you would be able to borrow up to 1000 \* 0.90 \* 0.725 **≈** 652.5 USD worth of WBTC.

The current list of supported collateral for initiating borrow and short positions are the following:

## Collaterals on Avalanche

|        |                   |                                            |
| ------ | ----------------- | ------------------------------------------ |
| Token  | Collateral Factor | Address                                    |
| USDT.e | 90%               | 0xc7198437980c041c805a1edcba50c1ce5db95118 |
| USDC.e | 90%               | 0xa7d7079b0fead91f3e65f86e8915cb59c1a4c664 |
| DAI.e  | 90%               | 0xd586e7f844cea2f87f50152665bcbc2c279d8d70 |
| WETH.e | 80%               | 0x49d5c2bdffac6ce2bfdb6640f4f80f226bc10bab |
| AVAX   | 80%               |                                            |

## Collaterals on Ethereum

| Token | Collateral Factor | Address                                    |
| ----- | ----------------- | ------------------------------------------ |
| USDT  | 90%               | 0xdac17f958d2ee523a2206206994597c13d831ec7 |
| USDC  | 90%               | 0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48 |
| DAI   | 90%               | 0x6b175474e89094c44da98b954eedeac495271d0f |
| ETH   | 80%               |                                            |


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