Appearance
Collateral Ratio
The collateral ratio (CR) measures the health of your Trove. It determines whether your position is safe or at risk of liquidation.
Formula
CR = (Collateral Value / Debt) × 100%Thresholds
| CR | Status |
|---|---|
| < 125% | Liquidated |
| 125% – 150% | At risk (unsafe in Recovery Mode) |
| 150%+ | Recommended safe zone |
Example
| Collateral | SOL Price | Collateral Value | Debt | CR | Status |
|---|---|---|---|---|---|
| 10 SOL | $100 | $1,000 | $666 | 150% | Safe |
| 10 SOL | $100 | $1,000 | $800 | 125% | Minimum |
| 10 SOL | $80 | $800 | $666 | 120% | At risk |
| 10 SOL | $73 | $730 | $666 | 109.6% | Liquidated |
Recovery Mode
Recovery Mode is a system-wide safety mechanism triggered when the Total Collateral Ratio (TCR) — the aggregate CR of all Troves — drops below 150%.
During Recovery Mode:
- Troves with CR below the TCR can be liquidated (not just those below 125%)
- New Troves must have a CR above the TCR
- Existing Troves cannot reduce their CR below the TCR
- The system incentivizes users to add collateral or repay debt
Recovery Mode ends when the TCR rises back above 150%.
Managing Your CR
- Add collateral to increase your CR when prices drop
- Repay debt to increase your CR without adding collateral
- Set alerts to monitor your CR and act before liquidation
- Target 150%+ to stay safe even during Recovery Mode