11 times, increasing their exposure to price changes. This is possible because XIM can be borrowed against $WETH, sold on the open market to purchase more $WETH — rinse and repeat.*
110%. A minimum debt required as below:
0.5%under normal operation. The fee is
0%during Recovery Mode. A
400 XIM(Ethereum) Liquidation Reserve charge will be applied as well, but returned to you upon repayment of debt.
baseRate.The fee rate is confined to a range between
5%and is multiplied by the amount of liquidity drawn by the borrower.
110%. So if your Trove has a debt
10,000 XIM, you would need at least
$11,000worth of $WETH posted as collateral to avoid being liquidated.
9.09% (= 100% * 10 / 110)of your collateral’s Dollar value.
400 XIM(Ethereum) is set aside as a way to compensate gas costs for the transaction sender in the event your Trove being liquidated. The Liquidation Reserve is fully refundable if your Trove is not liquidated, and is given back to you when you close your Trove by repaying your debt. The Liquidation Reserve counts as debt and is taken into account for the calculation of a Trove's collateral ratio, slightly increasing the actual collateral requirements.