KCD Repayment

There are no restrictions on KCD Repayment, such as mandatory deposit period; Users are free to repay minted KCD at all times. Both partial and entire repayments are available.

In the case of partial repayment, Stability Fee must be paid first. In other words, Stability Fee(in KCD) must first be paid before repaying minted KCD and withdrawing collateral. Partial repayment can be useful tool to manage LTV; it is necessary to manage LTV so as not to reach Liquidation LTV.

Collateral Withdrawal

As there is no minimum mandatory deposit period for collateral, users are free to withdraw their collateral at all times. Both partial and entire withdrawal are available. However, LTV at the time of withdrawal must be lower than Mint LTV in order to successfully withdraw.

Example : Repayment / Collateral Withdrawal

45 KCD has been minted with KLAY Collateral worth 100 USD (KLAY Max LTV : 45%). Should accrued Stability Fee be 14 KCD, LTV is nearing Liquidation LTV of 60%; Thus management is highly recommended.

• Repay 14 KCD :

  • Stability Fee fully paid

  • LTV is 45% (equal to Max LTV)

  • Thus collateral cannot be withdrawn

• Repay 34 KCD :

  • Stability Fee fully paid

  • 20 KCD (out of 45 minted KCD) repaid. LTV thus drops to 25%.

    • 25 KCD remaining, with 100 USD collateral. LTV = 25 KCD / 100 USD = 25%

  • Max 44.4 USD worth of collateral can be withdrawn.

    • 25 KCD, with 55.6 USD collateral. LTV = 25 KCD / (100-44.4) = 45%

    • Max LTV of 45% maintained

• Repay 59 KCD :

  • Both Stability Fee and minted KCD repaid.

  • LTV 0%

    • 0 KCD remaining, with 100 USD collateral. LTV = 0 KCD / 100 USD = 0%

  • Entire collateral can be withdrawn