Apricot EDU: Explaining Apricot Assist & Borrow Limits

  • Sally has $100 SOL deposited in her Apricot account.
  • To calculate Sally’s maximum borrow limit — she first must decide which LP pair she wants to farm at maximum portfolio leverage.
  • Sally decides she exercise her entire borrow limit and farm ORCA-USDC LP — receiving a variable interest rate of 125.07%
  • Her portfolio leverage will be maximized to 2.5x
  • Trigger Level — The value of the Borrow Limit Used Percentage which triggers Assists redemption and repayment sequence
  • Target Level — The value of Borrow Limit Used Percentage falls to after LP token redemption and loan repayment
  • The greater the difference between Trigger Level and Target Level, the more LP tokens Apricot Assist will help you sell/redeem when it is triggered.
  • It is recommended to keep the difference between Trigger Level and Target level small (e.g. <5%), especially if you have large positions that can create non-trivial slippage when deleveraging.
  • It should also be noted that Apricot Assist has a per-transaction size limit of $5K USD.
  • If Apricot Assist needs to sell more than $5K of your non-stable/stable tokens in order to bring your Borrow Limit Used below Assist Trigger Level, it will do so over multiple transactions separated by at least 20s.

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APRICOT FINANCE

A next-generation lending protocol that offers cross-margin leveraged yield farming with downside protection