Efficiency Mode

Capital Efficiency Boost

Maximizing capital efficiency means enabling users to do more with their assets. Kinza Finance incorporates unique features to maximize capital efficiency, and gives users opportunities to borrow more freely. With Efficiency Mode, certain relationships between assets are leveraged, and adjusted parameters are made available, so that users can more efficiently engage in borrowing and lending when those related assets are used in concert. Essentially, Efficiency Mode, or E-mode, is a boost mode. A user can toggle E-mode on and off, and benefit from a boost in capital efficiency.

When Efficiency Mode is turned on, certain assets will now have adjusted values for the following parameters:

• LTV : E-mode assets when used together will have an increased LTV parameter, allowing a higher maximum loan for the same provided collateral.

• Liquidation Threshold: E-mode assets when used together can be borrowed with a less sensitive liquidation threshold.

• Liquidation Penalty: Liquidation penalties are lower when E-mode assets are used.

When in Efficiency mode, it is still possible to provide additional non E-mode assets for use as collateral, but assets for borrowing will remain limited to E-mode assets.