Collateral ratio

The collateralization ratio (or collateral ratio) is calculated as the total collateral value divided by the total loan amount. This means when the value of the collateral increases the collateralization ratio will increase as well. In the other way, the collateralization ratio would decrease if the value of the minted assets increases. The ratio is calculated using prices taken from the oracle price feeds.

Depending on the selected loan scheme each vault has a minimum collateralization ratio. The vault must be kept above this ratio all the time to avoid liquidation.

The available minimum collateralization ratios are 150% min. ratio > 5% APR 175% min. ratio > 3% APR 200% min. ratio > 2% APR 350% min. ratio > 1.5% APR 500% min. ratio > 1% APR 1000% min. ratio > 0.5% APR

As an example with the 150% scheme and DFI worth 1000$ you could mint dTesla to a value up to 666$