Terms and Terminologies
To explain how these mechanisms work, there are some keywords that need to be described:

Actors

Minters

The person who creates synthetic assets by minting.

Liquidators

The person who does liquidation when some of the minters' positions fall below the maintenance margin.

Terms

Collateral

The assets that are used to represent the value of other assets.

Margin Level

The ratio between the collateral value and the oracle price.

Minimum Initial Margin

The minimum margin level that can be used when minting new assets.

Maintenance Margin

The minimum margin level that the user is safe from liquidation. If the margin falls below the maintenance margin, then the minter is subject to liquidation.
Last modified 4mo ago
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Contents
Actors
Terms