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Positions Monitoring System

SmartCredit.io has positions monitoring system, which will notify the borrowers if the liquidation's probability will increase

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Key Takeaways

  • SmartCredit.io's Positions Monitoring System sends Telegram alerts when a loan's liquidation probability rises above 15%.
  • Notifications are probability-based - not hard ratio-based - giving borrowers advance warning before a liquidation threshold is reached.
  • Borrowers can respond to alerts by adding more collateral or repaying part of the loan.
  • The system is available to all SmartCredit.io users at no extra cost; connect via the Profile section.
  • For Aave V3 positions, SmartCredit.io also offers the Protection Agent with real-time health factor monitoring.

Practically in all borrowing/lending systems, borrowers have to monitor their positions daily - they need to add more collateral or pay back parts of their loans when conditions change. Additionally, some external systems have emerged that monitor borrower positions. However, only a small fraction of money-market-fund users uses these external systems. This means most borrowers have to do daily risk management themselves.

SmartCredit.io addresses this situation differently:

  • The loans are created on the liquidation's probability of 5% (some advanced mathematics is there in the background)
  • Assuming a stable market - the liquidation's probability will sink with every day passed
  • In case of adverse market conditions - if the collateral value is declining - the system starts to notify the borrowers if liquidation probability increases to 15%

Borrowers will receive these notifications via telegram bot. Every borrower can subscribe to the SmartCredit.io bot via the "Profile" section, see this short video "How to subscribe to notifications?" for an explanation.

The key difference between SmartCredit.io's integrated monitoring system and external tools is that everything is based on probabilities. The information is prepared for the user, so that the user can decide:

  • ignore increased liquidation probability
  • Pay back parts of the loan
  • Increase collateral

More info about Liquidations.

Following notifications will be sent to the users:

  • Liquidation probability of loan has increased (starts from 15% probability, stops when probability is below 15%)
  • Loan is funded
  • Loan repayment deadline is closing
  • Loan request is cancelled (for example because collateral was not transferred)
  • User received staking rewards
  • User received borrower / lender bonus rewards
  • User received any other rewards

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