# Collateral Asset Parameter Modeling

When assessing a new coin, the following criteria will determine its initial parameters:

* **Loan-to-Value Ratio (LVR)**
* **Debt Limits/Maximum Borrowing Capacity (MBC)**
* **Liquidator Reward Percentage (LRP)**

The aim of deriving suitable values for these collateral asset parameters is to balance the competing purposes of maximizing both the platform’s stability and its long-term user adoption. Deriving suitable parameters employs a systematic and logical approach with a rationale that reflects the characteristics of each collateral asset.


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