C-Ratio Strategies

Horizon Protocol offers three preset strategies for managing your Collateralization Ratio (C-Ratio), catering to different risk levels:

Conservative Strategy (Lower Risk)

• Target C-Ratio: 1000% (Maintaining a comfortable safety margin)

• Purpose: To maintain a safe buffer above the target C-Ratio.

• Benefits: Lower risk of liquidation but yields fewer rewards.

• For: Users who prefer a safer approach and don't want to monitor their positions closely.

Neutral Strategy (Moderate Risk)

• Target C-Ratio: 800% (closer to the default)

• Purpose: Balancing risk and rewards.

• For: Users seeking a middle-ground approach between safety and reward maximization.

Aggressive Strategy (Higher Risk)

• Target C-Ratio: 600% (default)

• Purpose: To maximize rewards by staying close to the target C-Ratio.

• Risk: Higher risk due to a smaller buffer zone before liquidation.

• For: Users who actively manage their positions and aim for maximum rewards.

Choose a strategy based on your risk tolerance and how actively you can monitor your holdings.

Please note that the Target C-Ratio is subject to change based on community feedback. For the most up to date Target C-Ratio, visit the Network Stats page.