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Re:Ethereum Isn't Fun Anymore by lottin on Monday February 22, 2021 @11:24AM (#26226307)
What happens in the event of default?
Re:Ethereum Isn't Fun Anymore by rawtxapp on Monday February 22, 2021 @11:28AM (#26226370)
It's over-collaterized, so if you fall below the 150% minimum collateral ratio, maker smart contract could liquidate the asset to cover the loan and then return the remaining 50%-liquidation fees back to you. As long as you're conservative in your borrowing (as in you borrow up to 25%-50% of your holding), your chances of getting liquidated are pretty slim.