Platform Lending Pool Risk Management (Trading Account)

To maintain the stability of the lending pool, Zoomex’s Trading Account implements a robust risk-management framework known as the “Automatic Repayment Rules for the Lending Pool.”
This framework is designed to ensure efficient capital allocation and mitigate potential risks associated with high fund utilization rates.

Under the automatic repayment mechanism, borrowers are ranked in descending order by their outstanding loan amounts—the larger the loan, the higher the ranking.
When the platform’s automatic repayment ratio reaches a defined threshold, the system will initiate automatic repayments for the highest-ranked borrowers by converting their collateral assets into the borrowed asset to repay the loan, thereby helping maintain the stability of the lending pool.

However, borrowers are not necessarily required to repay the full loan amount during each repayment cycle. After each batch of repayments, the system re-ranks all borrowers based on their updated outstanding loan amounts and selects the next group of borrowers for subsequent repayment rounds.

Auto Repayment Parameters

The three (3) risk parameters are as follows:

Parameter	Loan-to-Pool Ratio	Description
Auto Repayment Warning Ratio	The specific ratio varies depending on the type of coin	When the loan-to-pool ratio reaches the specified threshold for a given coin,  potentially affected users will receive timely email warnings, recurring every four (4) hours, indicating the impending auto repayment.
Auto Repayment Ratio	100% – 150%	Once the loan-to-pool ratio reaches the specified threshold for a given coin, auto repayment will be triggered to maintain the stability of the lending pool.
Cease Auto Repayment Ratio	The specific ratio varies depending on the type of coin	The auto repayment process will cease once the loan-to-pool ratio drops to the specified threshold for a given coin.

Auto Repayment Implementation Rules

• The system will allocate the borrowing amounts tier by tier, triggering auto repayment for one tier at a time per user.
• The system continuously evaluates and monitors each auto repayment instance, halting the process if the utilization rate falls to the "Cease Auto Repayment Ratio" or below.
• User accounts failing to meet repayment requirements or facing potential liquidation will be temporarily excluded from auto repayment.
• The system will auto-convert the user's margin coin to the borrowed coin for repayment and the exchange fee is 1%.

Account Selection Criteria

• In the Trading Account, user accounts are filtered based on having a borrowed amount greater than zero in the corresponding coin. These accounts are sorted according to their unpaid borrowed amount, with higher-ranking given to those with larger unpaid borrowed amounts.
• In cases where multiple accounts have the same borrowed amount, the Zoomex UID is utilized as the secondary sorting criterion, in descending order. This approach ensures a systematic and fair selection process for automatic liquidation.

Example

• Tier Interval: 20,000 USDT
• Amount to be repaid to the Lending Pool: 200,000 USDT

User A's borrowing situation is detailed as shown below:

	Borrowed Amount	Tier	Amount Required to Lower Repayment Tier	Cumulative Repayment Amount
User A	250,000	13	10,000	10,000
	240,000	12	20,000	30,000
	220,000	11	20,000	50,000
	200,000	10	20,000	70,000
	180,000	9	20,000	90,000
	160,000	8	20,000	110,000
	140,000	7	20,000	130,000
	120,000	6	20,000	150,000
	100,000	5	20,000	170,000
	80,000	4	20,000	190,000
	60,000	3	20,000	210,000
	40,000	2	20,000	230,000
	20,000	1	20,000	250,000

User B's borrowing situation is outlined as shown below:

	Borrowed Amount	Tier	Amount Required to Lower Repayment Tier	Cumulative Repayment Amount of User B	Cumulative Repayment Amount of User A	Total Repayment Amount for Both User A & B
User B	150,000	8	10,000	10,000	110,000	120,000
	140,000	7	20,000	30,000	130,000	160,000
	120,000	6	20,000	50,000	150,000	200,000
	100,000	5	20,000	70,000	170,000	240,000
	80,000	4	20,000	90,000	190,000	280,000
	60,000	3	20,000	110,000	210,000	320,000
	40,000	2	20,000	130,000	230,000	360,000
	20,000	1	20,000	150,000	250,000	400,000

Based on the information provided in the tables above, the steps for auto repayment are outlined as follows:

1. Initial State:

• User A's current tier: 13
• User B's current tier: 8

2. Repayment Process:

• Auto repayment commences from the highest outstanding borrowed amount, starting with User A from tier 13 and moving downwards until tier 8. At tier 8, both User A and User B are in the same tier, so the system will re-evaluate the account selection criteria to choose the next target for auto repayment.

User A:

• Tier 8 borrowed amount for User A: 160,000 USDT.

User B:

• Tier 8 borrowed amount for User B: 150,000 USDT.

Since User A’s borrowed amount on tier 8 is still greater than User B's, User A will be selected for auto repayment before User B. After the auto repayment process for both User A and User B, reaches tier 5, the entire repayment amount of 200,000 USDT has been repaid.

Conclusion:

• User A accumulates a total repayment amount of 150,000 USDT.
• User B accumulates a total repayment amount of 50,000 USDT.