> For the complete documentation index, see [llms.txt](https://docs.securd.org/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.securd.org/documentation/securd-models/lp-token-rating-model/liquidity-risk-measure-lrm.md). # Liquidity risk measure (LRM) In order to define the liquidity risk measure, the scoring methodology relies on the liquidity at risk (LaR) which corresponds to the liquidity of the pool in a stressed scenario and is illustrated in the following graph:

Figure 1: Liquidity of the WBTC-WETH pool in SushiSwap and the associated LaR which corresponds to the 97.5th percentile.

Moreover, the VaR equivalent Slippage (VeS) is the slippage resulting from a $10000 trade given the liquidity at risk. The VeS is also assigned to a liquidity risk category ranging from a scale of 1 (low risk) to 7 (high risk):
VeSLRM
< 0.1%1
≥ 0.1% and < 0.5%2
≥ 0.5% and < 1%3
≥ 1% and < 2%4
≥ 2% and < 5%5
≥ 5% and < 10%6
>10%7
*Table 3: Liquidity risk measure (LRM).* --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.securd.org/documentation/securd-models/lp-token-rating-model/liquidity-risk-measure-lrm.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.