# Factors ### Collateral factor Collateral factor means percentages of collateral that can be used to borrow in safe position. This will be 50%. (ex) If you have 10000 weights with collateralized NFTs, you can borrow max 5000 VANILLAs) ### Reserve factor Reserve factor means percentages of reserved amounts from total liquidity (BUM). It will be used for setting borrow rates. This will be 10%. ### Liquidation incentives factor Liquidation incentives factor means discount percentages used when you liquidate position. This will be 90%. (ex) If you repaid debt for 10000 BUM, you can liquidate approximately 11111 weights of NFTs) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://bumup.gitbook.io/vanilla/features/borrow/factors.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.