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Is the liq. protection tied to a different deposit versus your normal collateral? Liquidation events can happen pretty suddenly - you can't really be called to approve funds for this payment when stuff is crashing. Feels like you'd be setting aside a separate set of collateral for this insurance(?) - uta

Fortunately it's not a separate collateral! Literally any asset you hold in a portfolio alongside the Taker (and other debt) positions is your collateral. This mean you can deposit tokens beforehand, hold yield bearing assets as collateral, or even use other Takers as hedges to prevent liquidation scenarios.

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