calculateRiskFactorBasisPoints()

function calculateRiskFactorBasisPoints(
  collateralAmount,
  creditedAmount,
  collateralFactorBasisPoints,
  creditedPerUnitCollateral,
  priceExponent?,
  maxOneHundredPercent?
): number;

Calculates the risk factor in basis points, given the collateral and credited assets, the price, and the Liquidation Collateral Factor.

Risk Factor = Current Collateral Factor / Liquidation Collateral Factor, represented in basis points.

Parameters

Parameter	Type	Default value	Description
collateralAmount	bigint	undefined	The collateral amount in wei.
creditedAmount	bigint	undefined	The credited amount in wei.
collateralFactorBasisPoints	number	undefined	The liquidation collateral factor. A value of 0 (e.g. a disabled or unconfigured asset pair — see checkCreditedTokenValidity) is a divide-by-zero input, not “no risk”: with maxOneHundredPercent: false it returns UINT16_MAX_BASIS_POINTS (see isInsufficientSentinel), the same sentinel calculateCollateralFactorBasisPoints uses for its zero-value case; the default capped path returns 10_000 instead, so the position reads as maximally risky rather than risk-free either way.
creditedPerUnitCollateral	bigint	undefined	The price. X, in the equation 1 Collateral = X Credited.
priceExponent	number	0	The +/- exponent of the price if it cannot easily be represented without losing precision.
maxOneHundredPercent	boolean	true	Whether the returned amount should be capped at 10000 basis points.

Returns

number

The risk factor in basis points. Risk factors above 10000 are possible but will be listed as 10000 if maxOneHundredPercent is true. A zero liquidation factor uses that cap for display results and preserves the contract’s uint16 sentinel for uncapped results.