# Minting

**Minting**is the process where the user creates new synthetic tokens on the blockchain while having the same value as the Oracle price at that moment.

At the moment of minting, the minter is required to provide the collateral to meet the

**Minimum Initial Margin.**The current Minimum Initial Margin is at**150%**, which is subject to change with prior notice**.**The*margin level*is calculated using the following formula:$(Collateral\space Value \times 100) / Oracle \space Price$

There is a minting fee of

**0.1%**of the collateral value.Alice wants to mint an asset called dXXX. At the time, the Oracle price is $100 per dXXX. In order to mint, Alice needs to provide at least $150 worth of $DOLLY to mint 1 token of dXXX.

Alice decides to mint with $150 worth of $DOLLY. Therefore, the

*margin level*of her mint position is at$(150 \times 100) / 100 = 150\%$

When the Oracle price of dXXX rises to $120, her mint position will have a

*margin level*of$(150 \times 100) / 120 = 125\%$

If this

*margin level*falls below the**Maintenance Margin**, then the mint position is subject to**Liquidation****.**Last modified 1yr ago