In order to mitigate market risks, Flux sets the collateral factor of various asset types according to their Asset Risk Level, as displayed in Table 1. Assets cannot be over-collateralized. By combining asset price, balance, and collateral factor, the borrowing capacity is dynamically calculated for each account; each account can only borrow assets within its borrowing capacity. Collateral cannot be withdrawn, as long as the borrow is ongoing; however, even if user assets are used as collateral, the users will receive deposit interest.