Reserve Risk Parameters

The composability of the DeFi ecosystem implies risks from an individual component flow into all dependent systems. Currencies are at the heart of the Bend protocol as they enable operations and hold the assets and liabilities of the protocol.

This documentation, developed by the Risk Management Team, focuses on the risk assessment for currencies supported by Bend. The risk assessment considers market, counter-party and smart contract risks for the currencies selected for Bend protocol, aiming to contribute to higher risk standards within DeFi.

Each Reserve asset in the Bend protocol has specific values related to their risk, which influences how they are supplied and borrowed. The calibration of the parameters for Bend is more aggressive as the Bend ecosystem is mature with some educated users and liquidators.

The table below shows a summary of the latest values.

Name	Symbol	Reserve Factor
Ethereum	ETH	30%