Decreasing Collateral
This guide shows you how to interact with UMA protocol and decrease collateral for synthetic assets minted.
Note: You can only decrease collateral if you have minted synthetic asset earlier, and are not completely liquidated.
Click on 'Mint' on the navigation bar
Select the synthetic asset that you want to decrease collateral, and click on 'Manage'.
Click on ‘Reduce collateral’.
For Fast Withdrawal:
Select 'Fast Withdrawal' if your Collateralization Ratio (CR) will remain above or equal to the Global Collateralization Ratio (GCR) after the withdrawal.
Type in the amount of PERL you would like to withdraw and click on 'Withdraw Collateral'
Confirm the transaction.
For Slow Withdrawal:
Select 'Slow Withdrawal' if your Collateralization Ratio (CR) will be below the Global Collateralization Ratio (GCR) after the withdrawal.
Note: There will be a 3-hour "withdrawal liveness period" where other token holders can liquidate your position if they believe the withdrawal would bring your position under the liquidation ratio (collateral requirement).
Type in the amount of PERL you would like to withdraw and click on 'Withdraw Collateral'
Confirm the transaction.
Wait until the "withdrawal liveness period" passes.
Click on 'Withdraw' after the "withdrawal liveness period" passes.
Note: You would not reach this step if your collateralization ratio after the withdrawal does not meet the collateral requirement and your position will be liquidated.
Confirm the transaction.
After the collateral is withdrawn successfully, you can see that the Collateralization Ratio and the Collateral Size (PERL) has decreased.
Decreasing collateral decreases your collateralization ratio and global collateralization ratio (GCR). All new minting must have collateralization >= GCR to be accepted by the protocol.
Last modified 1yr ago