# Vaults and Collateral

## What are Vaults?

A Vault in Agilely is where you can deposit collateral to borrow USDA and maintain your loan. Each Vault is associated with an Ethereum address, and you can have one Vault per collateral type. 

A Vault has two balances: one for the collateral and another for the debt denominated in USDA. You can adjust these balances by adding collateral or repaying debt, which affects your Vault's  Collateral Ratio (CR) and Loan-to-Value (LTV) ratio. You can close your Vaults at any time (excluding the times when system is in Recovery Mode) by fully paying off your debt. 

## Collateral ratio

The Collateral Ratio (CR)  is used to describe the relationships between the collateral, the borrowed amount, and the value of the collateral. 

The Collateral Ratio is the proportion of the total value of the Collateral to the total Value of the Borrowed amount. It is expressed as a percentage and indicates the degree to which the collateral backs the borrowed amount.

$$
\displaystyle{C}{R}={\left(\frac{{{C}{V}}}{{{B}{V}}}\right)}⋅{100}
$$

A higher Collateral Ratio means that the borrower has more collateral relative to the borrowed amount, which reduces the risk for the protocol. 

## Collateral Minimum CR

You can find here the maximum amount of USDA that you can borrow based on your collateral of choice. (We define the MCR by the risk level of collateral)

| Token                           | Minimum CR |
| ------------------------------- | ---------- |
| ETH                             | 110%       |
| wstETH                          | 120%       |
| rETH                            | 120%       |
| sfrxETH                         | 120%       |
| cbETH                           | 120%       |
| wBTC                            | 120%       |
| GLP                             | 130%       |
| GMX                             | 150%       |
| ARB                             | 150%       |
| Liquid Restaking Tokens(Coming) | NaN        |

In addition mint caps are in place to ensure protocol stability. 


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