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# Price Fluctuation

Price fluctuation is one of four criteria in Steakhouse Financial's Market Rating layer. It measures the exchange rate stability between paired assets in a lending market, including volatility, correlation, and expected price evolution.

The Price Fluctuation criterion is different from price volatility, as it reflects the exchange rate between the two assets of a market. It includes price volatility but also the correlation between the loan asset and the collateral asset in a money market, as well as their expected price evolution. For a stablecoin, it describes how its reserve assets are correlated with the represented value of the token.

The [LLTV](/docs/risk-management/collateral/layers-pillars-and-criteria/market-rating-layer-3/lltv) parameter, described in the next section, mitigates Price Fluctuation risk and improves its rating.

:::info
Indicators:

* Assets are pegged or interchangeable
* Strong correlation between assets, reserve assets or loan assets
* Substantial probability of economic risk loss due to high-amplitude movement in exchange rate (native crypto asset vs dollar)
:::