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 & CDCBTC	Minimum Collateral Ratio (MCR)	135%*
CDCETH & CDCBTC	Total Collateral Ratio (TCR)	150%
CDCETH & CDCBTC	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

LCRO	Minimum Collateral Ratio (MCR)	130%*
LCRO	Total Collateral Ratio (TCR)	150%
LCRO	Collateral Cap	N.A.

*The minimum collateral ratio displayed on Orby's website will be 135%. 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 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 its impact on you here.