Orby Network
  • Introduction
    • What is Orby?
    • What is $USC?
  • Tokenomics
    • $ORB
    • $esORB
    • The Vault
  • Overview
    • $USC Borrowing & Repayment
      • Borrowing $USC
      • Repaying $USC
    • Supported Collateral
      • Collateral Risk Parameters
    • Liquidations & the Stability Pool
      • Liquidations
      • Stability Pool
    • $USC's peg stability & Redemptions
      • Base Rate
      • Redemption Mechanism
    • Understanding Liquidations vs Redemptions vs Repayment
    • Risk Dashboard
    • Recovery Mode
      • Liquidations in Normal Mode
      • Liquidations in Recovery Mode
    • Security & Audits
    • Orby Ecosystem & Partnerships
    • Airdrop Campaign
      • Airdrop Seasons
        • Season 1
        • Season 2
      • How to claim airdrop rewards?
      • Airdrop Terms and Conditions
  • User Guide
    • How to connect to Orby Network
    • How to borrow $USC
      • Opening a new shuttle
      • Borrowing more $USC
    • How to repay $USC
      • Repaying debt partially
      • Repaying debt fully
    • How to obtain collateral
    • How to add collateral
    • How to withdraw collateral
    • How to use the Stability Pool
      • Depositing $USC
      • Withdrawing $USC
      • Claiming Stability Pool rewards
    • How to stake $esORB/$ORB
    • How to track points
    • How to use the Redemption feature
      • Getting the Best Exchange Rate
      • VVS Swap Widget
    • How to recover collateral after liquidation
    • How to recover collateral after redemption
    • Glossary of Terms
  • Additional Info
    • Smart Contract Addresses
    • Price Oracle
    • Team Wallets
    • Risk Disclosure
    • Terms of Use
    • Brand Guidelines
    • Bridging
    • Bug Bounty
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On this page
  • What happens during a liquidation?
  • What happens during a redemption?
  • What happens during a repayment?
  1. Overview

Understanding Liquidations vs Redemptions vs Repayment

PreviousRedemption MechanismNextRisk Dashboard

Last updated 1 year ago

What happens during a liquidation?

  1. Your shuttle will be closed

  2. You lose your 20 $USC Liquidation Reserve deposit (this is sent to liquidator)

  3. Lose all your collateral (assuming Orby is in )

  4. You get to keep your borrowed $USC

What happens during a redemption?

If your shuttle was fully redeemed against:

  1. Your shuttle will be closed

  2. You are not required to pay the 20 $USC Liquidation Reserve deposit (this will be burnt)

  3. You lose some of your collateral (redemption rate = 1 USC for $1 worth of collateral)

  4. You get to keep your borrowed $USC

If your shuttle was partially redeemed against:

  1. Your shuttle will remain open/active and functions as per normal

  2. You lose some of your collateral (redemption rate = 1 USC for $1 worth of collateral)

  3. Some of your $USC debt would have been repaid by redeemer (amount determined by redemption rate)

  4. You get to keep your borrowed $USC

What happens during a repayment?

If you fully repaid your $USC debt:

  1. Repay required borrowed $USC + borrowing fee

  2. Your shuttle will be closed

  3. You are not required to pay the 20 $USC Liquidation Reserve deposit (this will be burnt)

  4. You can withdraw all your deposited collateral

If you partially repaid your $USC debt:

  1. Repay required borrowed $USC

  2. Your shuttle will remain open/active and functions as per normal

  3. You can withdraw some of your deposited collateral (up to the minimum collateral ratio)

Normal Mode
The images and data shown are for illustration purposes only
The images and data shown are for illustration purposes only