The reserve factor is the percentage of Fee paid to Iron Bank. If the reserve factor is 10, then that would imply that 10% of the interest paid on the asset is for Iron Bank.
In the other hand, the collateral factor is the maximum you can borrow on a particular asset.
Example: The collateral factor for ETH is 75%, if the price of ETH is considered as $1000, the max you will be able to borrow in other assets is worth $750
Last modified 7mo ago