# Maximum leverage

Securd leverages on the value at risk and equivalently the VeV to define the liquidation threshold which in turn determines the maximum leverage ratio. [Therefore, for each grade, a maximum leverage ratio is computed](#user-content-fn-1)[^1] :

<table><thead><tr><th width="180" align="center">Grade</th><th width="200" align="center">Max Leverage</th></tr></thead><tbody><tr><td align="center">AAA</td><td align="center">20</td></tr><tr><td align="center">AA</td><td align="center">18</td></tr><tr><td align="center">A</td><td align="center">16</td></tr><tr><td align="center">BBB</td><td align="center">12</td></tr><tr><td align="center">BB</td><td align="center">8</td></tr><tr><td align="center">B</td><td align="center">4</td></tr></tbody></table>

*Table 9: Maximum leverage ratio with respect to grade.*

[^1]: The results has been rounded up or down for harmonization purposes.