Understanding Liquidations vs Redemptions vs Repayment
What happens during a liquidation?
Your shuttle will be closed
You lose your 20 $USC Liquidation Reserve deposit (this is sent to liquidator)
Lose all your collateral (assuming Orby is in Normal Mode)
You get to keep your borrowed $USC
What happens during a redemption?
If your shuttle was fully redeemed against:
Your shuttle will be closed
You are not required to pay the 20 $USC Liquidation Reserve deposit (this will be burnt)
You lose some of your collateral (redemption rate = 1 USC for $1 worth of collateral)
You get to keep your borrowed $USC
If your shuttle was partially redeemed against:
Your shuttle will remain open/active and functions as per normal
You lose some of your collateral (redemption rate = 1 USC for $1 worth of collateral)
Some of your $USC debt would have been repaid by redeemer (amount determined by redemption rate)
You get to keep your borrowed $USC
What happens during a repayment?
If you fully repaid your $USC debt:
Repay required borrowed $USC + borrowing fee
Your shuttle will be closed
You are not required to pay the 20 $USC Liquidation Reserve deposit (this will be burnt)
You can withdraw all your deposited collateral
If you partially repaid your $USC debt:
Repay required borrowed $USC
Your shuttle will remain open/active and functions as per normal
You can withdraw some of your deposited collateral (up to the minimum collateral ratio)
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