# Parameters

The following parameters govern the behavior of the Risk Engine, ensuring the security and efficiency of the protocol. These parameters influence borrowing, collateral management, and liquidation processes across the protocol's **pToken** markets.

#### **LTV (collateralFactor)**

The **LTV** determines the portion of a user's supplied assets that can be used as borrowing power. Can be read by `collateralFactor` function.

```solidity
function collateralFactor(uint8 categoryId, IPToken pToken)
    external
    view
    returns (uint256);
```

#### **LLTV (liquidationThreshold)**

The **LLTV** represents the point at which a borrower’s position becomes eligible for liquidation. Can be read by `liquidationThreshold` function.

<pre class="language-solidity"><code class="lang-solidity"><strong>function liquidationThreshold(uint8 categoryId, IPToken pToken)
</strong>    external
    view
    returns (uint256);
</code></pre>

#### **Close Factor**

The **Close Factor** determines the percentage of a borrower’s **under-collateralized** position that can be liquidated in a single transaction. Can be read by `closeFactor` function.

```solidity
function closeFactor(address pToken) external view returns (uint256);
```

#### **Liquidation Incentive**

The **Liquidation Incentive** is the bonus given to liquidators when they repay a borrower’s debt and seize their collateral. This incentive ensures an active liquidation market by rewarding liquidators and can be read by `liquidationIncentive` function.

```solidity
function liquidationIncentive(uint8 categoryId, address pToken)
    external
    view
    returns (uint256);
```

#### **Supply Cap**

The **Supply Cap** sets the **maximum amount** of a given **pToken** that can be supplied to the protocol and can be read by `supplyCap` function.

```solidity
function supplyCap(address pToken) external view returns (uint256);
```

#### **Borrow Cap**

The **Borrow Cap** limits the **total amount** of a given **pToken** that can be borrowed and can be read by `borrowCap` function.

```solidity
function borrowCap(address pToken) external view returns (uint256);
```


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