Margin maintenance

Borrowers may manage their collateral during the term of a Term Repo transaction by calling certain external functions.

Term Repo Lockers

Each Term Repo has a Term Repo Locker, which is a smart contract that locks collateral on behalf of borrowers and lenders for that Term Repo.

By segregating Term Repo Lockers by maturity and purchase token/collateral token pairs rather than instituting a single large commingled collateral pool reduces user exposure to cybersecurity risks and exploits.

Price oracle

All borrower balances, including collateral and repurchase balances are valued in USD using decentralized price oracles (primarily Chainlink). These oracles are source of truth for the fair-market value of all tokens on the Protocol (including all collateral tokens) and are decentralized to mitigate against unilateral attack by a malicious data provider (for more information, see risk disclosures on oracle risk).

Withdraw collateral

If at any time a borrower has margin excess, the borrower may withdraw collateral by calling the public function externalUnlockCollateral. A borrower may not make any withdrawals that would put their account into a margin deficit.

Add collateral

If at any time a borrower wishes to post additional margin to their account as additional buffer against liquidation, they may do so by calling the public function externalLockCollateral. There are not limits to the amount of collateral a borrower my lock in this manner.