I need to keep depositing more collateral in my vault to prevent my collateral from coming up for auction. If i fail to do so then people can 'bid' to pay back my loan and get all the collateral. The fact that we have a minimum over collateralization means people will always have incentive to bid to close the loan, since the collateral will be worth more. Sound anywhere close? lol
The over collateralization could be much higher, too.
Right, I think the lowest I saw was 150%
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