How Do I Manage Synths?
Last updated
Last updated
Managing your collateral is an imperative step in the process of minting uSTONKS.
If the price of a synth rises in relation to your collateral price, your collateral ratio (C.R.) drops. If your C.R. falls below 2, you face higher risk of liquidation.
You can increase your C.R. by selecting “Deposit” and adding collateral to your position
If your C.R. is comfortably high and you want to be more capital efficient, you can Instant Withdraw collateral up to the “Global Collaterization Ratio.”
If you want to withdraw more collateral and lower your C.R. below the Global Collaterization Ratio, select on “Request Withdraw.”
Please note that this option is only for advanced users. Only use request withdraw if you have experience with synthetics. Please reach out on our Discord for any clarifications.
Once you’ve inputed the collateral amount you’d like to withdraw, click on approve. This will initiate a 2 hour wait period to ensure that you do not withdraw below the “Minimum Collateral Ratio.”
Your collateral will be claimable after 2 hours. Once the two hours have passed, you can click on withdraw to finalize the withdrawing process.
Of course, please be cautious selecting this option as withdrawing up to the Minimum Collaterization Ratio exposes you to significant liquidation risk if the prices swing too much.
You can burn (or repay) the synths that you have minted up to the minimum position allowed. This minimum position is shown in the synth information section to the right, or below, the manage interface. Burning will increase your collateralization ratio (making it safer) and will not change the amount of collateral that you have deposited.
