Minimum Collateral Ratio (MCR)

The Minimum Collateral Ratio (MCR) is the lowest collateral ratio that a user must maintain in order to open a vault during standard operations (Normal Mode). If the vault's ICR falls below MCR, it may be subjected to liquidation too.

The MCR is determined by governance for all supported collateral types and will initially be set at 130%.

It can subsequently be adjusted through governance processes.