# 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)