Collateral Risk Parameters

The minimum collateral ratio (MCR) works to ensure that $USC remains overcollateralized at all times. Every shuttle must have a debt position above MCR in order to remain active.

To recap, collateral ratio is calculated as follows:

Collateral ratio = (amount of collateral in USD / amount of $USC borrowed in USD) * 100

The MCR is dependent on our risk assessment of the underlying collateral type.

Collateral Type	Parameter
CDCETH	Minimum Collateral Ratio (MCR)	135%*
CDCETH	Total Collateral Ratio (TCR)	150%
CDCETH	Collateral Cap	N.A.

*The minimum collateral ratio displayed on Orby's website will be 140%. We provided a 5% buffer to ensure that users do not get immediately liquidated

Commonly asked questions

What is Total Collateral Ratio (TCR)?

Total Collateral Ratio (TCR) is the average of all shuttle's (with $cdcETH) collateral ratio.

• TCR = total dollar value of the respective collateral / total dollar value of the corresponding debt

If TCR falls below the specified threshold (in this case it's 150%), then all shuttles with $cdcETH will go into Recovery Mode. You can read more about Recovery Mode and it's impact on you here.