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FAQ/Account/What is the collateral amount on Savings screen in my Account page for?

What is the collateral amount on Savings screen in my Account page for?



This amount is 110% of the value of your tokens plus interest in Structured Savings, calculated at the start of the one-week vesting period, collateralized and priced in USDT, USDC or TUSD. In other words, for every $1 USDT, USDC or TUSD worth of token you placed as Structured Savings, $1.10 plus interest worth of USDT, USDC or TUSD is held in a separate cold wallet as collateral against your savings tokens. This is to ensure that your funds are protected at all times, and also serve as proof of ability to payout in USDT, USDC or TUSD when the token price upper limit is triggered on maturity.

When you create a Structured Savings, you can choose either USDT, USDC or TUSD as your underlying token, which serves as the payout token in which your original tokens gets converted to, when the strike price is triggered on maturity of your Structured Savings.