Mint LTV

Collateral Type	Mint LTV
oWEMIX	45%
KLAY	45%

‘Mint LTV’ is set for each collateral type based on price stability. For example, if oWEMIX has Mint LTV of 45%, it means that a user can deposit $100 worth of oWEMIX as collateral and mint up to 45 KCD.

Max Mint

Maximum mintable KCD depends on the value and 'Mint LTV' of collateral.

Example

Collateral : 100 USD

• KLAY Max LTV : 45%. Thus, 45 KCD mintable

• oWEMIX Max LTV : 45%. Thus, 45 KCD mintable

Collateral : 200 USD

• KLAY Max LTV : 45%. Thus, 90 KCD mintable

• oWEMIX Max LTV : 45%. Thus, 90 KCD mintable

As demonstrated in the examples above, more KCD can be minted with higher collateral value.

LTV (Loan-To-Value)

LTV is the ratio of minted KCD to the value of deposited collateral. For example, if you deposit $100 worth of collateral and mint 30 KCD, LTV of the collateral would be 30%. Factors that affect LTV include :

1. Value of deposited collateral assets fluctuates in real-time, reflecting market price.

2. Accumulation of Stability Fee on minted KCD gradually increases LTV.

As such, LTV and Max mint may fluctuate continuously even without additional collateral or KCD mint.

Example (Mint LTV of KLAY : 45%)

• Mint LTV (for initial KLAY Collateral of 100 USD) : 45 KCD

  • KLAY Collateral appreciates to 105 USD : Max 47.25 KCD mintable

  • KLAY Collateral depreciates to 95 USD : Max 42.75 KCD mintable

• LTV : 45% (45 KCD minted with KLAY Collateral of 100 USD) :

  • KLAY Collateral appreciates to 105 USD : LTV decrease to 42.86%

  • KLAY Collateral depreciates to 95 USD : LTV increase to 47.37%

Even if the value of the collateral exceeds the ‘Mint LTV’ due to depreciation of collateral, Liquidation may not be triggered immediately. However, Liquidation may occur if LTV continues to rise(due to depreciation of collateral, or accumulation of Stability Fee) and reaches Liquidation LTV. To avoid Liquidation, users should monitor LTV continuously and consider the potential fluctuation of collateral value when determining the amount of KCD to mint.

For more information on Liquidation, please refer to "Liquidation" page