Borrow & Repay
Last updated
Last updated
On the manage page, enter the amount of USDA you wish to mint/borrow. The minimum collateral ratio is 110%. This means that if you deposit $110 worth of ETH (mockETH), you can mint up to 100 USDA. If your collateral ratio drops below 110% due to market fluctuations, you will be liquidated. To avoid this, it is recommended to maintain a collateral ratio above 120%.
When your vault's collateral ratio approaches the Minimum Collateral Ratio (MCR), it's crucial to act to avoid liquidation. You have two options: add more collateral or repay some of your debt. To repay your borrowed USDA, head to the "Manage" page and choose the "Repay" option. Specify the amount of USDA you wish to repay.
The "Current" value displays the total debt you've borrowed using the collateral in this vault. The "Available To Repay" value indicates the maximum amount of USDA you can repay while keeping a minimum debt of 1800 USDA. The information below the input box offers guidance on how much USDA to repay. The "Payable Debt" value signifies the maximum amount of USDA you can repay to close the vault. Meanwhile, "Remaining Debt" indicates the remaining total debt after repaying the specified amount of USDA.
Note: If the amount of USDA you've borrowed falls below 1800 USD after repayment, which is equivalent to the total debt ("Current") minus the liquidation reserve (200 USDA) and dynamic fee, you won't be able to repay and will need to choose to close your vault.
