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Hello, quick question: what happens when the value of DFI

in the Vault decreases to below 50% of the total security value due to price changes?

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Then you Cant take a loan

Martin-Ruesch Автор вопроса
Pho
Then you Cant take a loan

i.e. i cant take any further loan until I've rebalanced to over 50% DFI again? other than that, there are no implications?

Martin Ruesch
i.e. i cant take any further loan until I've rebal...

Correct. And you can only remove other assets from the Vault if in ONE transaction dfi comes above 50%.

Martin-Ruesch Автор вопроса
Pho
Correct. And you can only remove other assets from...

okay. that is a good hint. Why it must be one transaction?

Martin-Ruesch Автор вопроса

okay. thus i assume it's only also possible to cure the sitution in one transaction, i.e. otherwise an error ocurs?

Martin-Ruesch Автор вопроса
Pho
Yes Just try it with Little Amounts;)

thx for your support. I increased now the DFI slightly to 51% precautionary.

From what I know, your vault practically is locked (NOT liquidated) when DFI <50%. So the only thing you can really do is add collateral or remove collateral so DFI >50%.

Spencer L
From what I know, your vault practically is locked...

Actually no, if your DFI falls below 50%, you'll not be able to take new loans, but you will also not be able to remove any part of your collateral in order to make DFI more than 50% again that way. You'll always need to top up your DFI amount again in order to be able to have action on your vault again, whether is take a new loan or simply remove collateral

DanieL BaptistA
Actually no, if your DFI falls below 50%, you'll n...

I didn't realize so, I just noticed it in the comments above and included it in my answer. Thank you very much!

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