Detailed policy of Supply & Borrow

Supply APY, Borrow APY, and Estimated Details

Supply APY (%) and Borrow APY (%) are subject to change based on real-time conditions.
KSP Distribution APY (%) refers to the estimated annual APY that can be earned from the KSP distributed in the pool. KSP rewards are not recognized as collateral.
Borrow APY (%) is the calculated interest rate representing the annual Borrow fee that must be paid when borrowing assets.
All figures are real-time estimates and may differ from actual results.

Supply and Removal Policy

Users can freely remove their supplied assets and earned rewards at any time. However, if users are actively borrowing assets, the minimum collateral ratio must be maintained to support the borrowing position, which may limit the removable amount.
Removals may be temporarily delayed depending on pool utilization, but the reward rate model is designed to encourage the natural return of borrowed assets, ensuring that all supplied assets can be fully removed.
In addition to supply rewards, KSP rewards are distributed for contributing to liquidity supply. The total supply APY for each supply pool is the sum of the supply reward APY and the KSP distribution APY.
In the event of significant market price fluctuations, auto-return may occur, and it is possible that all (100%) of the user’s supplied assets are returned to repay the borrowed assets, leaving no remaining assets for the user.
The supply reward APY (%) and KSP distribution APY (%) for each supply pool are real-time values that fluctuate based on the total supply in the pool, supply/borrow status, and daily KSP distribution quantity.
Supply rewards are distributed in the same token as the supplied asset and are automatically resupplied to the pool as collateral. However, KSP rewards are not recognized as collateral and must be manually claimed.
Supply rewards accrue in real time based on APY and can be removed along with the supplied assets. When removing liquidity, users can remove both the supplied assets and the accumulated rewards up to that point.
Upon initial liquidity supply, an approval transaction must be completed for each token, after which users can continue supplying liquidity.
80% of the accumulated borrowing costs are distributed to liquidity suppliers as supply rewards, while the remaining 20% is added to the reserve factor, which is used to ensure the safe return of borrowed assets in exceptional cases or for KSP token buybacks to maintain protocol stability.

Borrow and Return Policy

Users can borrow desired assets using their supplied liquidity as collateral. Supply rewards are recognized as collateral, but KSP rewards are not.
The maximum borrowing limit is determined by the supplied collateral, pool liquidity, and Max Loan to Value (LTV) ratio.
The Max LTV ratio ensures that the protocol remains stable, even if the value of the borrowed assets rises sharply or the value of the collateral assets drops significantly, preventing difficulties in asset repayment.
Borrowed assets must be repaid along with the associated borrowing costs (Borrow APY).
80% of the borrowing fees paid by users are distributed to liquidity providers, while 20% is added to the reserve factor. The reserve factor is used for exceptional cases where borrowed assets are not properly returned or for KSP token buybacks to stabilize the protocol.
The Borrow APY for each pool depends on the pool utilization rate, which is calculated as follows: Pool Utilization Rate = (Total Borrowed Assets / Total Supplied Assets)＊100

Auto-Return Threshold and Auto-Return Policy

Borrowers must pay Borrow APY for borrowing liquidity. This cost is included in the borrowed assets in real time. Borrowers can remove their remaining collateral only after restoring the borrowed assets, including all fees.
To ensure the safe return of borrowed assets, auto-return may be triggered if the Loan-to-Value (LTV) ratio exceeds the auto-return threshold. The threshold varies by asset and can be checked on the details page for each pool or Docs.
During an auto-return, the smart contract repay part or all of the borrower’s collateral to restore the borrowed assets. An auto-return fee is applied during this process, and the cost, including the fee, is deducted from the user’s collateral.
The auto-return fee serves as compensation to the protocol and may be used to address unreturned assets during rapid price fluctuations.

Terminology

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Supply and Removal Policy

Users can freely remove their supplied assets and earned rewards at any time. However, if users are actively borrowing assets, the minimum collateral ratio must be maintained to support the borrowing position, which may limit the removable amount.

Removals may be temporarily delayed depending on pool utilization, but the reward rate model is designed to encourage the natural return of borrowed assets, ensuring that all supplied assets can be fully removed.

In addition to supply rewards, KSP rewards are distributed for contributing to liquidity supply. The total supply APY for each supply pool is the sum of the supply reward APY and the KSP distribution APY.

In the event of significant market price fluctuations, auto-return may occur, and it is possible that all (100%) of the user’s supplied assets are returned to repay the borrowed assets, leaving no remaining assets for the user.

The supply reward APY (%) and KSP distribution APY (%) for each supply pool are real-time values that fluctuate based on the total supply in the pool, supply/borrow status, and daily KSP distribution quantity.

Supply rewards are distributed in the same token as the supplied asset and are automatically resupplied to the pool as collateral. However, KSP rewards are not recognized as collateral and must be manually claimed.

Supply rewards accrue in real time based on APY and can be removed along with the supplied assets. When removing liquidity, users can remove both the supplied assets and the accumulated rewards up to that point.

Upon initial liquidity supply, an approval transaction must be completed for each token, after which users can continue supplying liquidity.

80% of the accumulated borrowing costs are distributed to liquidity suppliers as supply rewards, while the remaining 20% is added to the reserve factor, which is used to ensure the safe return of borrowed assets in exceptional cases or for KSP token buybacks to maintain protocol stability.

Borrow and Return Policy

Users can borrow desired assets using their supplied liquidity as collateral. Supply rewards are recognized as collateral, but KSP rewards are not.

The maximum borrowing limit is determined by the supplied collateral, pool liquidity, and Max Loan to Value (LTV) ratio.

The Max LTV ratio ensures that the protocol remains stable, even if the value of the borrowed assets rises sharply or the value of the collateral assets drops significantly, preventing difficulties in asset repayment.

Borrowed assets must be repaid along with the associated borrowing costs (Borrow APY).

80% of the borrowing fees paid by users are distributed to liquidity providers, while 20% is added to the reserve factor. The reserve factor is used for exceptional cases where borrowed assets are not properly returned or for KSP token buybacks to stabilize the protocol.

The Borrow APY for each pool depends on the pool utilization rate, which is calculated as follows: Pool Utilization Rate = (Total Borrowed Assets / Total Supplied Assets)＊100

Auto-Return Threshold and Auto-Return Policy

Borrowers must pay Borrow APY for borrowing liquidity. This cost is included in the borrowed assets in real time. Borrowers can remove their remaining collateral only after restoring the borrowed assets, including all fees.

To ensure the safe return of borrowed assets, auto-return may be triggered if the Loan-to-Value (LTV) ratio exceeds the auto-return threshold. The threshold varies by asset and can be checked on the details page for each pool or Docs.

During an auto-return, the smart contract repay part or all of the borrower’s collateral to restore the borrowed assets. An auto-return fee is applied during this process, and the cost, including the fee, is deducted from the user’s collateral.

The auto-return fee serves as compensation to the protocol and may be used to address unreturned assets during rapid price fluctuations.

Terminology