FAQ: Collateral

What can I use as collateral?

It is set per synthetic by governance, not fixed protocol-wide. A standard synth is backed by the collateral token(s) approved for it; an event-triggered synth is backed by a weighted basket of assets held in a vault. The specific tokens and parameters are published when each synth is listed.

Can I get my collateral back?

Yes, burn the synthetic you minted and withdraw, provided the position stays above its minimum collateralisation ratio throughout.

What happens if my position becomes under-collateralised?

Anyone can liquidate it for a reward, and you lose collateral in the process. There is no margin call, keep a buffer above the minimum ratio. See Risks.

Why does the collateral on my event-triggered synth change?

Because its backing is a basket that rebalances when the referenced event resolves, along a formula fixed at mint, bounded per rebalance. See Rebalance engine.