# Introduction Please review Disclaimer: Risk of Using Protocol and Terms of Service before using the Yeti Finance and/or interacting with YETI or YUSD. Yeti Finance & YETI/YUSD are not avaliable in the U.S. Yeti Finance is a cutting edge borrowing protocol built on Avalanche that allows users to borrow up to against LP tokens, staked assets like Liquid AVAX, and base assets like WETH and yield-bearing stablecoins. Users continue earning rewards they would normally receive when they deposit assets in the Yeti Finance protocol. Borrowers receive YUSD (an over-collateralized USD stablecoin) at a minimum ratio of 1 YUSD to 1.1 USD in collateral. Users will then be able to use the YUSD to purchase additional assets, hedge their position, or provide liquidity for additional rewards. YUSD can be redeemed for $1 of underlying collateral. Yeti Finance builds off [Liquity's ](https://www.liquity.org/)economic model to ensure peg stability and efficient liquidations. Yeti Finance also offers users the ability to borrow against muliple assets at once instead of a single asset. This helps with borrowing against volatile assets as multiple assets can serve as collateral for your loan instead of just one, greatly reducing the risk of liquidations due to asset volatility and flash crashes. Yeti Finance is a **quantum leap** forward in the stablecoin/lending landscape. NOTE: A new borrowing model is now in effect as of November 2nd, 2022. These changes include a reduction of one-time borrowing fees and and introduction of a 0.5% starting interest rate for new and existing borrowers. Read more [here](https://blog.yetifinance.co/the-path-to-becoming-the-best-defi-borrowing-protocol-790459ddf93d). Please read our [DISCLAIMERS: RISK OF USING PROTOCOL](broken://pages/4tPZfPtJELu0WIwMB5ph) before using our protocol and interacting with YETI or the YUSD token, and our most recent article on[ major protocol updates.](https://medium.com/@yetifinance/the-path-to-becoming-the-best-defi-borrowing-protocol-790459ddf93d) ![](/files/iCoIxqEfyC09WPKmfYfC) ### # Terms of Service Please read the most updated and full Terms of Service at https\://app.yeti.finance/#/terms Yeti Finance is an open-source borrowing protocol. Sapiens Research (“we”, “our”, or “us”) offer access to the Yeti Finance protocol on the Avalanche blockchain to deposit assets and borrow the protocol’s native stablecoin, YUSD, as well as stake various assets (”Protocol”), through its website. 1. **Use of the Services** To use the Services, you must legally be able to enter into the Agreement. By using the Services, you represent and warrant that you meet the eligibility requirement. If you do not meet the requirement, you must not access or use the Site or the Services. YETI FINANCE AND THE YETI AND YUSD TOKEN IS NOT OFFERED TO PERSON OR ENTITIES WHO RESIDE IN, ARE CITIZENS OF, ARE LOCATED IN, ARE INCORPORATED IN, OR HAVE A REGISTERED OFFICE IN THE UNITED STATES OF AMERICA (COLLECTIVELY, “US PERSONS”) or UNITED KINGDOM (COLLECTIVELY, “U.K. PERSONS”) . MOREOVER, NO SERVICES (AS DEFINED BELOW) ARE OFFERED TO PERSON OR ENTITIES WHO RESIDE IN ARE CITIZENS OF, ARE LOCATED IN, ARE INCORPORATED IN, OR HAVE A REGISTERED OFFICE IN ANY SANCTIONED TERRITORY (AS DEFINED BELOW, AND ANY SUCH PERSON OR ENTITY FROM A SANCTIONED TERRITORY, A “SANCTIONED PERSON”). WE DO NOT MAKE EXCEPTIONS; THEREFORE, IF YOU ARE A U.S. or U.K. PERSON, THEN DO NOT ATTEMPT TO USE THE APP OR PROTOCOL, AND IF YOU ARE A SANCTIONED PERSON, THEN DO NOT ATTEMPT TO USE ANY OF THE SERVICES, USE OF A VIRTUAL PRIVATE NETWORK (”VPN”) TO CIRCUMVENT THE RESTRICTIONS SET FORTH HEREIN IS EXPLICITLY BLOCKED AND PROHIBITED. ARBITRATION NOTICE: THESE TERMS (“TERMS”) CONTAIN AN ARBITRATION CLAUSE BELOW. EXCEPT FOR CERTAIN TYPES OF DISPUTES MENTIONED IN THAT ARBITRATION CLAUSE, YOU AND WE AGREE THAT ANY DISPUTES RELATING TO THE SERVICES (AS DEFINED BELOW) WILL BE RESOLVED BY MANDATORY BINDING ARBITRATION, AND YOU WAIVE ANY RIGHT TO A TRIAL BY JURY OR TO PARTICIPATE IN A CLASS-ACTION LAWSUIT OR CLASS-WIDE ARBITRATION. You are entering into a binding Agreement. BY ACCESSING OR USING OUR SERVICES, WHICH INCLUDE OUR VARIOUS WEBSITES, INCLUDING, WITHOUT LIMITATION, YETI.FINANCE (AND ANY RESPECTIVE OR RELATED SUBDOMAINS); APPLICATIONS (COLLECTIVELY WITH ANY MATERIALS AND SERVICES AVAILABLE THEREIN, AND SUCCESSOR WEBSITE(S) OR APPLICATION(S) THERETO, THE “SITE”), AND OTHER SERVICES THAT LINK TO THESE TERMS, AS WELL AS ANY INFORMATION, TEXT, LINKS, GRAPHICS, PHOTOS, AUDIO, VIDEO, OR OTHER MATERIALS STORED, RETRIEVED OR APPEARING THEREON, WHETHER ACCESSED THROUGH THE SITE OR OTHERWISE (COLLECTIVELY, THE “SERVICES”), YOU ARE ENTERING INTO A BINDING AGREEMENT WITH US THAT INCLUDES THESE TERMS, YETI.FINANCE - PRIVACY POLICY (FOUND HERE), AND OTHER POLICIES REFERENCED HEREIN (COLLECTIVELY, THE “AGREEMENT”). To the extent that there is a conflict between these Terms and any applicable additional terms, these Terms will control unless expressly stated otherwise. If you don't agree with these Terms, you may not use the Services and should not visit the Site or otherwise engage with the Services. We may update the Services and the Terms. We may update the Services, the Agreement, and any part of the Terms at any time, for any reason, at our sole discretion. Once any part of the Agreement is updated and in effect, you will be bound by the Terms if you continue to use the Services, including by accessing the Site. We may, at any time, and without liability to you, modify or discontinue all or part of the Services (including access to the Services via any third-party links). You may contact us with questions about your use of the Services at . When you communicate with us electronically, you consent to receive communications from us electronically. You should review the Terms from time to time to ensure that you understand the terms and conditions that apply to you when you access or use the Site. 2. **Assumption of Risk** You assume the risks of engaging in transactions that rely on smart contracts and other experimental technology. Transactions on the Yeti Finance Protocol rely on smart contracts stored on the Avalanche blockchain blockchains, cryptographic tokens generated by the smart contracts, and other nascent software, applications and systems that interact with blockchain-based networks. These technologies are experimental, speculative, inherently risky, and subject to change. Among other risks, bugs, malfunctions, cyberattacks, or changes to the applicable blockchain (e.g., forks) could disrupt these technologies and even result in a total loss of cryptoassets, their market value, or digital funds. You are solely responsible for the safekeeping of the private key associated with the blockchain address used to interact with the Protocol. We assume no liability or responsibility for any such risks. If you are not comfortable assuming these risks, you should not access or engage in transactions using blockchain-based technology. One of the other defining features of blockchain technology is that its entries are immutable, which means, as a technical matter, they generally cannot be deleted or modified by anyone. This includes smart contracts and cryptoassets generated and programmed by smart contracts. THUS, TRANSACTIONS RECORDED ON THE BLOCKCHAIN, INCLUDING TRANSFERS OF CRYPTOASSETS AND DATA PROGRAMMED INTO THESE ASSETS MUST BE TREATED AS PERMANENT AND CANNOT BE UNDONE BY US OR BY ANYONE. YOU MUST BE VERY CAREFUL WHEN YOU FINALIZE ANY TRANSACTION THAT WILL BE RECORDED ON THE BLOCKCHAIN. We are not liable for any third-party services or links. We are not responsible for the content or services of any third-party, including, without limitation, any network, or apps like Discord, or MetaMask, and we make no representations regarding the content or accuracy of any third-party services or materials. The use and access of any third-party products or services, including through the Services, is at your own risk. You agree to the automated collection and disbursement of assets by smart contracts. You acknowledge and agree that all transactions accessed through the Services will be automatically processed using one or more blockchain-based smart contracts. By engaging in transactions using the Services, you acknowledge and consent to the automatic processing of all transactions in connection with using the Services. You further acknowledge and agree that the applicable smart contract will dictate how the funds of a transaction and ownership of cryptoassets are distributed. You acknowledge the risks of using the Services. You bear sole responsibility for evaluating the Services before using them, and all transactions accessed through the Services are irreversible, final, and without refunds. The Services may be disabled, disrupted or adversely impacted as a result of sophisticated cyber-attacks, surges in activity, computer viruses, and/or other operational or technical challenges, among other things. We disclaim any ongoing obligation to notify you of all of the potential risks of using and accessing our Services. You acknowledge there is a real risk that assets deposited into the protocol and Protocol related tokens: YUSD, YETI, and vault tokens may suffer complete and permanent economic loss should the protocol’s technical or economic mechanisms suffer catastrophic failure. You acknowledge that the terms of the Protocol may change at any time for any reason included but not limited to protocol fees, rewards, and accessibility. You agree to (defined below) accept these risks and agree that you will not seek to hold any Sapiens Research Indemnified Party responsible for any consequent losses. You are solely responsible for the security of your wallet. You understand and agree that you are solely responsible for maintaining the security of your wallet. Any unauthorized access to your wallet by third parties could result in the loss or theft of any cryptoasset, or any funds held in your account and any associated accounts. You understand and agree that we have no involvement in, and you will not hold us responsible for managing and maintaining the security of your wallet. You further understand and agree that we are not responsible, and you will not hold us accountable, for any unauthorized access to your wallet. It is your responsibility to monitor your wallet. We reserve the right to restrict your access from engaging with the Services. You agree that we have the right to restrict your access to the Services via any technically available methods if we suspect, in our sole discretion, that (a) you are using the Services for money laundering or any illegal activity; (b) you have engaged in fraudulent activity; (c) you have acquired cryptoassets using inappropriate methods, including the use of stolen funds to purchase such assets; (d) you are the target of any sanctions administered or enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”), the United Nations Security Council, the European Union, Her Majesty’s Treasury, or any other legal or regulatory authority in any applicable jurisdiction; (e) either you, as an individual or an entity, or your wallet address is listed on the Specially Designated Nationals and Blocked Persons List (“SDN List”), Consolidated Sanctions List (“Non-SDN Lists), or any other sanctions lists administered by OFAC; (f) you are located, organized, or resident in a country or territory that is, or whose government is, the subject of sanctions, including but not limited to Côte d’Ivoire, Cuba, Belarus, Iran, Iraq, Liberia, North Korea, Sudan, and Syria; or (g) you have otherwise acted in violation of these Terms. If we have a reasonable suspicion that you are utilizing the Site for illegal purposes, we reserve the right to take whatever action we deem appropriate. We do not guarantee the quality or accessibility of the Services. As a condition to accessing or using the Services or the Site, you acknowledge, understand, and agree that from time to time, the Site and the Services may be inaccessible or inoperable for any reason, including, but not limited to equipment malfunctions, periodic maintenance procedures or repairs, causes beyond our control or that we could not reasonably foresee, disruptions and temporary or permanent unavailability of underlying blockchain infrastructure or unavailability of third-party service providers or external partners for any reason. You acknowledge and agree that you will access and use the Services, including, without limitation, the Site at your own risk. You should not engage in blockchain-based transactions unless it is suitable given your circumstances and financial resources. By using the Services, you represent that you have been, are and will be solely responsible for conducting your own due diligence into the risks of a transaction and the underlying smart contracts and cryptoassets. 3. **Privacy** We care about your privacy. We use safeguards to preserve the integrity and security of your and aggregate data. However, we cannot guarantee that unauthorized third parties will never be able to obtain or use your PII or aggregate data for improper purposes. You acknowledge that you provide your PII and aggregate data at your own risk, and that we will comply with all valid subpoena requests. By accessing and using the Interface, you understand and consent to our collection, use, and disclosure of your PII and aggregate data. 4. **Taxes** You are responsible for your taxes and duties. Users bear sole responsibility for paying any and all taxes, duties, and assessments now or hereafter claimed or imposed by any governmental authority associated with their use of the Services, and/or payable as the result of using and/or exploiting any cryptoassets and interacting with smart contracts. Blockchain-based transactions are novel, and their tax treatment is uncertain. 5. **Prohibited Content** You may only use the Services if you comply with this Agreement (including, without limitation, these Terms), applicable third-party policies, and all applicable laws, rules, regulations and related guidance. The following conduct is prohibited: using the Services for, or to promote or facilitate, illegal activity (including, without limitation, money laundering, financing terrorism, tax evasion, buying or selling illegal drugs, contraband, counterfeit goods, or illegal weapons); exploiting the Services for any unauthorized commercial purpose; uploading or transmitting viruses, worms, Trojan horses, time bombs, cancel bots, spiders, malware or any other type of malicious code that will or may be used in any way that will affect the functionality or operation of the Services; attempting to or actually copying or making unauthorized use of all or any portion of the Services, including by attempting to reverse compile, reformatting or framing, disassemble, reverse engineer any part of the Services; harvesting or otherwise collecting information from the Services for any unauthorized purpose; using the Services under false or fraudulent pretenses or otherwise being deceitful; interfering with other users’ access to or use of the Services; interfering with or circumventing of the security features of the Services or any third party’s systems, networks or resources used in the provision of Services; engaging in any attack, hack, denial-of-service attack, interference, or exploit of any smart contract in connection with use of the Service (and operations performed by a user that are technically permitted by a smart contract may nevertheless be a violation of our Agreement, including these Terms, and the law); or engaging in any anticompetitive behavior or other misconduct. Violating our rules may result in our intervention. You agree and acknowledge that if you use the Services to engage in conduct prohibited by applicable law, permanently reserve the right to completely or partially restrict or revoke your access to the Services, either completely or for a period of time, at our sole discretion. We reserve the right to amend, rectify, edit, or otherwise alter transaction data to remediate or mitigate any damage caused either to us or to any other person as a result of a user’s violation of this Agreement or applicable law. We reserve the right to investigate violations. We reserve the right to investigate and prosecute any suspected breaches of this Agreement, including the Terms. We may disclose any information as necessary to satisfy any law, regulation, legal process, or governmental request. 6. **Disclaimers and Limitations of Liability** **We make no representations or warranties.** THE SERVICES ARE PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS. WE AND OUR PARENTS, SUBSIDIARIES, AFFILIATES, RELATED COMPANIES, OFFICERS, DIRECTORS, CONTRACTORS, EMPLOYEES, AGENTS, REPRESENTATIVES, PARTNERS, AND LICENSORS (COLLECTIVELY, THE “SAPIENS RESEARCH INDEMNIFIED PARTIES”) MAKE NO GUARANTEES OF ANY KIND IN CONNECTION WITH THE SERVICES. TO THE MAXIMUM EXTENT PERMITTED UNDER APPLICABLE LAW, THE SAPIENS RESEARCH INDEMNIFIED PARTIES DISCLAIM ALL WARRANTIES AND CONDITIONS, WHETHER EXPRESS OR IMPLIED, OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT AND DISCLAIM ALL RESPONSIBILITY AND LIABILITY FOR: * THE SERVICES BEING ACCURATE, COMPLETE, CURRENT, RELIABLE, UNINTERRUPTED, TIMELY, SECURE, OR ERROR-FREE. INFORMATION (INCLUDING, WITHOUT LIMITATION, THE VALUE OR OUTCOME OF ANY TRANSACTION) AVAILABLE THROUGH THE SERVICE IS PROVIDED FOR GENERAL INFORMATION ONLY AND SHOULD NOT BE RELIED UPON OR USED AS THE SOLE BASIS FOR MAKING DECISIONS. ANY RELIANCE ON THE SERVICES IS AT YOUR OWN RISK. * INJURY OR DAMAGE RESULTING FROM THE SERVICES. FOR EXAMPLE, YOU EXPRESSLY ACKNOWLEDGE, UNDERSTAND, AND AGREE there is a real risk that assets deposited into the protocol and Protocol related tokens: YUSD, YETI, and vault tokens may suffer complete and permanent economic loss should the Protocol’s technical or economic mechanisms suffer catastrophic failure. YOU EXPRESSLY ACKNOWLEDGE THAT THE SAPIENS RESEARCH INDEMNIFIED PARTIES ARE NOT RESPONSIBLE FOR LOSS OR DAMAGE CAUSED BY ANOTHER USER’S CONDUCT, UNAUTHORIZED ACTORS, OR ANY UNAUTHORIZED ACCESS TO OR USE OF THE SERVICES. * VIRUSES, WORMS, TROJAN HORSES, TIME BOMBS, CANCEL BOTS, SPIDERS, MALWARE OR OTHER TYPE OF MALICIOUS CODE THAT MAY BE USED IN ANY WAY TO AFFECT THE FUNCTIONALITY OR OPERATION OF THE SERVICES. **Limitation of Liability.** TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT SHALL ANY SAPIENS RESEARCH INDEMNIFIED PARTY BE LIABLE TO YOU FOR ANY LOSS, DAMAGE, OR INJURY OF ANY KIND INCLUDING ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, EXEMPLARY, CONSEQUENTIAL, OR PUNITIVE LOSSES OR DAMAGES, OR DAMAGES FOR SYSTEM FAILURE OR MALFUNCTION OR LOSS OF PROFITS, DATA, USE, BUSINESS OR GOOD-WILL OR OTHER INTANGIBLE LOSSES, ARISING OUT OF OR IN CONNECTION WITH: (A) THE SERVICES OR YOUR INABILITY TO USE OR ACCESS THE SERVICES; (B) MISUSE OF THE SERVICES (INCLUDING WITHOUT LIMITATION, UNAUTHORIZED ACCESS OF THE SERVICES); (C) ANY USER CONDUCT ON THE SERVICES; OR (D) TERMINATION, SUSPENSION OR RESTRICTION OF ACCESS TO ANY THE SERVICES. IN ADDITION TO THE FOREGOING, NO SAPIENS RESEARCH INDEMNIFIED PARTY SHALL BE LIABLE FOR ANY DAMAGES CAUSED IN WHOLE OR IN PART BY: (A) USER ERROR, SUCH AS FORGOTTEN PASSWORDS OR INCORRECTLY CONSTRUCTED SMART CONTRACTS OR OTHER TRANSACTIONS; (B) SERVER FAILURE OR DATA LOSS; (C) THE MALFUNCTION, UNEXPECTED FUNCTION OR UNINTENDED FUNCTION OF THE BLOCKCHAIN, ANY COMPUTER OR CRYPTOASSET NETWORK (INCLUDING ANY WALLET PROVIDER), INCLUDING WITHOUT LIMITATION LOSSES ASSOCIATED WITH NETWORK FORKS, REPLAY ATTACKS, DOUBLE-SPEND ATTACKS, SYBIL ATTACKS, 51% ATTACKS, GOVERNANCE DISPUTES, MINING DIFFICULTY, CHANGES IN CRYPTOGRAPHY OR CONSENSUS RULES, HACKING, OR CYBERSECURITY BREACHES; (D) ANY CHANGE IN VALUE OF ANY CRYPTOASSET; (E) ANY CHANGE IN LAW, REGULATION, OR POLICY; (VI) EVENTS OF FORCE MAJEURE; OR (F) ANY THIRD PARTY. THIS LIMITATION OF LIABILITY IS INTENDED TO APPLY WITHOUT REGARD TO WHETHER OTHER PROVISIONS OF THESE TERMS HAVE BEEN BREACHED OR HAVE PROVEN INEFFECTIVE. THE LIMITATIONS SET FORTH IN THIS SECTION SHALL APPLY REGARDLESS OF THE FORM OF ACTION, WHETHER THE ASSERTED LIABILITY OR DAMAGES ARE BASED ON CONTRACT, INDEMNIFICATION, TORT, STRICT LIABILITY, STATUTE, OR ANY OTHER LEGAL OR EQUITABLE THEORY, AND WHETHER OR NOT THE SAPIENS RESEARCH INDEMNIFIED PARTIES HAVE BEEN INFORMED OF THE POSSIBILITY OF ANY SUCH DAMAGE. IN NO EVENT WILL THE SAPIENS RESEARCH INDEMNIFIED PARTIES’ CUMULATIVE LIABILITY TO YOU OR ANY OTHER USER, FROM ALL CAUSES OF ACTION AND ALL THEORIES OF LIABILITY EXCEED ONE THOUSAND U.S. DOLLARS (U.S. $1,000.00). UNDER NO CIRCUMSTANCES SHALL ANY SAPIENS RESEARCH INDEMNIFIED PARTY BE REQUIRED TO DELIVER TO YOU ANY VIRTUAL CURRENCY AS DAMAGES, MAKE SPECIFIC PERFORMANCE, OR ANY OTHER REMEDY. IF YOU WOULD BASE YOUR CALCULATIONS OF DAMAGES IN ANY WAY ON THE VALUE OF VIRTUAL CURRENCY, YOU AND WE AGREE THAT THE CALCULATION SHALL BE BASED ON THE LOWEST VALUE OF THE VIRTUAL CURRENCY DURING THE PERIOD BETWEEN THE ACCRUAL OF THE CLAIM AND THE AWARD OF DAMAGES. Some jurisdictions do not allow the exclusion or limitation of certain warranties and liabilities provided in this section; accordingly, some of the above limitations and disclaimers may not apply to you. To the extent applicable law does not permit Sapiens Research. Indemnified Parties to disclaim certain warranties or limit certain liabilities, the extent of Sapiens Research Indemnified Parties’ liability and the scope of any such warranties will be as permitted under applicable law. 7. **Indemnification** You agree to indemnify, defend, and hold harmless the Sapiens Research Indemnified Parties from any claim or demand, including reasonable attorneys’ fees, made by any third party due to or arising out of: (a) your breach or alleged breach of the Agreement (including, without limitation, these Terms); (b) anything you contribute to the Services; (c) your misuse of the Services, or any smart contract and/or script related thereto; (d) your violation of any laws, rules, regulations, codes, statutes, ordinances, or orders of any governmental or quasi-governmental authorities; (e) your violation of the rights of any third party, including any intellectual property right, publicity, confidentiality, property, or privacy right; (f) your use of a third-party product, service, and/or website; or (g) any misrepresentation made by you. We reserve the right to assume, at your expense, the exclusive defense and control of any matter subject to indemnification by you. You agree to cooperate with our defense of any claim. You will not in any event settle any claim without our prior written consent. 8. **Arbitration Agreement and Waiver of Rights, Including Class Actions.** PLEASE READ THIS SECTION CAREFULLY: IT MAY SIGNIFICANTLY AFFECT YOUR LEGAL RIGHTS, INCLUDING YOUR RIGHT TO FILE A LAWSUIT IN COURT AND TO HAVE A JURY HEAR YOUR CLAIMS. IT CONTAINS PROCEDURES FOR MANDATORY BINDING ARBITRATION AND A CLASS ACTION WAIVER. **Agreement to Attempt to Resolve Disputes Through Good Faith Negotiations** Prior to commencing any legal proceeding against us of any kind, including an arbitration as set forth below, you and we agree that we will attempt to resolve any dispute, claim, or controversy between us arising out of or relating to the agreement or the Services (each, a “Dispute” and, collectively, “Disputes”) by engaging in good faith negotiations. Such good faith negotiations require, at a minimum, that the aggrieved party provide a written notice to the other party specifying the nature and details of the Dispute. The party receiving such notice shall have thirty (30) days to respond to the notice. Within sixty (60) days after the aggrieved party sent the initial notice, the parties shall meet and confer in good faith by videoconference, or by telephone, to try to resolve the Dispute. If the parties are unable to resolve the Dispute within ninety (90) days after the aggrieved party sent the initial notice, the parties may agree to mediate their Dispute, or either party may submit the Dispute to arbitration as set forth below. **Agreement to Arbitrate** You and we agree that any Dispute that cannot be resolved through the procedures set forth above will be resolved through binding arbitration in accordance with the International Arbitration Rules of the International Centre for Dispute Resolution. The place of arbitration shall be the British Virgin Islands. The language of the arbitration shall be English. The arbitrator(s) shall have experience adjudicating matters involving Internet technology, software applications, financial transactions and, ideally, blockchain technology. The arbitrator’s award of damages must be consistent with the terms of the “Limitation of Liability” subsection of these Terms as to the types and amounts of damages for which a party may be held liable. The prevailing party will be entitled to an award of their reasonable attorney’s fees and costs. Except as may be required by law, neither a party nor its representatives may disclose the existence, content, or results of any arbitration hereunder without the prior written consent of (all/both) parties. UNLESS YOU TIMELY PROVIDE US WITH AN ARBITRATION OPT-OUT NOTICE (AS DEFINED BELOW IN THE SUBSECTION TITLED “YOUR CHOICES”), YOU ACKNOWLEDGE AND AGREE THAT YOU AND WE ARE EACH WAIVING THE RIGHT TO A TRIAL BY JURY OR TO PARTICIPATE AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS ACTION OR REPRESENTATIVE PROCEEDING. FURTHER, UNLESS BOTH YOU AND WE OTHERWISE AGREE IN WRITING, THE ARBITRATOR MAY NOT CONSOLIDATE MORE THAN ONE PERSON’S CLAIMS AND MAY NOT OTHERWISE PRESIDE OVER ANY FORM OF ANY CLASS OR REPRESENTATIVE PROCEEDING. Changes By rejecting any changes to these Terms, you agree that you will arbitrate any Dispute between you and us in accordance with the provisions of this section as of the date you first accepted these Terms (or accepted any subsequent changes to these Terms). 9. **Waiver of Injunctive or Other Equitable Relief.** TO THE MAXIMUM EXTENT PERMITTED BY LAW, YOU AGREE THAT YOU WILL NOT BE PERMITTED TO OBTAIN AN INJUNCTION OR OTHER EQUITABLE RELIEF OF ANY KIND, SUCH AS ANY COURT OR OTHER ACTION THAT MAY INTERFERE WITH OR PREVENT THE DEVELOPMENT OR EXPLOITATION OF THE SERVICES, OR ANY OTHER WEBSITE, APPLICATION, CONTENT, SUBMISSION, PRODUCT, SERVICE, OR INTELLECTUAL PROPERTY OWNED, LICENSED, USED OR CONTROLLED BY ANY SAPIENS RESEARCH INDEMNIFIED PARTY. 10. **Termination; Cancellation** This Agreement is effective unless and until terminated by either you or us. You may terminate your Agreement with us at any time by ceasing all access to the Site, Protocol and/or the Services. If, in our sole judgment, you fail, or we suspect that you have failed, to comply with any term or provision of the Agreement (including without limitation any provision of these Terms), we reserve the right to terminate our Agreement with you and deny you access to the Services. We further reserve the right to restrict your access to the Site or to stop providing you with all or a part of the Services at any time and for no reason, including, without limitation, if we reasonably believe: (a) your use of the Services exposes us to risk or liability; (b) you are using the Services for unlawful purposes; or (c) it is not commercially viable to continue providing you with our Services. All of these are in addition to any other rights and remedies that may be available to us, whether in equity or at law, all of which we expressly reserve. WE RESERVE THE RIGHT TO MODIFY THE SERVICES AT ANY TIME, BUT WE HAVE NO OBLIGATION TO UPDATE THE SERVICES. YOU AGREE THAT IT IS YOUR RESPONSIBILITY TO MONITOR CHANGES TO THE SERVICES THAT MAY AFFECT YOU. YOU AGREE THAT WE MAY REMOVE THE SERVICES AND/OR ANY CONTENT THEREON FOR INDEFINITE PERIODS OF TIME OR CANCEL THE SERVICES AT ANY TIME, WITHOUT NOTICE TO YOU. 11. **Severability:**\ \ If any provision of the Agreement (including, without limitation, these Terms) is determined to be unlawful, void, or unenforceable, such provision shall nonetheless be enforceable to the fullest extent permitted by applicable law, and the unenforceable portion shall be deemed to be severed from the Agreement. Such determination shall not affect the validity and enforceability of any other remaining provisions.
12. **Assignment** \ The Agreement (including, without limitation, these Terms) may be assigned without your prior consent to any Sapiens Research Indemnified Party, or to its successors in the interest of any business associated with the Services provided by us. You may not assign or transfer any rights or obligations under the Agreement without our prior written consent.
13. **Entire Agreement** \ \ The Agreement (including, without limitation, these Terms, and the Sapiens Research Privacy Policy) and any policies or operating rules posted by us on the Services constitute the entire agreement and understanding between you and us and govern your use of the Services, superseding any prior or contemporaneous agreements, communications, and proposals, whether oral or written, between you and us (including, but not limited to, any prior versions of these Terms). Any failure by us to exercise or enforce any right or provision of the Agreement (including, without limitation, these Terms) shall not constitute a waiver of such right or provision.
14. **Governing Law** \ \ These Terms and any separate agreements whereby we provide you Services shall be governed by and construed in accordance with the laws of the British Virgin Islands.
15. **No Fiduciary Duties**\ \ This Agreement is not intended to, and does not, create or impose any fiduciary duties on us. To the fullest extent permitted by law, you acknowledge and agree that we owe no fiduciary duties or liabilities to you or any other party, and that to the extent any such duties or liabilities may exist at law or in equity, those duties and liabilities are hereby irrevocably disclaimed, waived, and eliminated. You further agree that the only duties and obligations that we owe you are those set out expressly in this Agreement. # Disclaimer: Risks & YETI/YUSD Please review Disclaimer: Risk of Using Protocol and Terms of Service before using the Yeti Finance and/or interacting with YETI or YUSD. Yeti Finance & YETI/YUSD are not available in the U.S. Yeti Finance is a novel borrowing protocol that allows users to deposit assets and borrow the protocol’s native stablecoin, YUSD, against them. The Yeti Finance protocol is made up of both proprietary and free, public, and open-source software.Your use of Yeti Finance involves various risks, including, but not limited, to losses while digital assets are deposited into Yeti Finance via smart contract or economic exploits, and losses due to liquidations and redemptions. Before borrowing, staking, or liquidity providing you should fully review our [technical documentation](https://techdocs.yeti.finance/) to understand how the Yeti Finance protocol works. While the Yeti Finance Finance Protocol has been thoroughly audited by multiple independent software security firms and undergone third-party economic analysis, there remains a risk that assets deposited into the protocol as well as the YUSD and YETI tokens may suffer complete and permanent economic loss should the Yeti protocol or any integrated protocols' technical or economic mechanisms suffer catastrophic failure. USE AT YOUR OWN RISK: THE YETI FINANCE PROTOCOL IS PROVIDED “AS IS”, WITHOUT WARRANTIES OF ANY KIND. No developer or entity involved in creating the YETI FINANCE will be liable for any claims or damages whatsoever associated with your use, inability to use, or your interaction with other users of the Yeti Finance protocol, including any direct, indirect, incidental, special, exemplary, punitive or consequential damages, or loss of profits, cryptocurrencies, tokens, or anything else of value. Yeti reserves the right to modify the terms of the Yeti protocol at any time for any reason. Yeti Finance is a novel borrowing protocol that allows users to deposit assets and borrow the protocol’s native stablecoin, YUSD, against them. The Yeti Finance protocol is made up of both proprietary and free, public, and open-source software.Your use of Yeti Finance involves various risks, including, but not limited, to losses while digital assets are deposited into Yeti Finance via smart contract or economic exploits, and losses due to liquidations and redemptions. Before borrowing, staking, or liquidity providing you should fully review our [technical documentation](https://techdocs.yeti.finance/) to understand how the Yeti Finance protocol works. While the Yeti Finance Finance Protocol has been thoroughly audited by multiple independent software security firms and undergone third-party economic analysis, there remains a risk that assets deposited into the protocol as well as the YUSD and YETI tokens may suffer complete and permanent economic loss should the protocol’s technical or economic mechanisms suffer catastrophic failure. USE AT YOUR OWN RISK: THE YETI FINANCE PROTOCOL IS PROVIDED “AS IS”, WITHOUT WARRANTIES OF ANY KIND. No developer or entity involved in creating the YETI FINANCE will be liable for any claims or damages whatsoever associated with your use, inability to use, or your interaction with other users of the Yeti Finance protocol, including any direct, indirect, incidental, special, exemplary, punitive or consequential damages, or loss of profits, cryptocurrencies, tokens, or anything else of value. Yeti reserves the right to modify the terms of the Yeti protocol at any time for any reason. YETI FINANCE AND THE YETI AND YUSD TOKEN IS NOT OFFERED TO PERSON OR ENTITIES WHO RESIDE IN, ARE CITIZENS OF, ARE LOCATED IN, ARE INCORPORATED IN, OR HAVE A REGISTERED OFFICE IN THE UNITED STATES OF AMERICA (COLLECTIVELY, “US PERSONS”). MOREOVER, NO SERVICES (AS DEFINED BELOW) ARE OFFERED TO PERSON OR ENTITIES WHO RESIDE IN ARE CITIZENS OF, ARE LOCATED IN, ARE INCORPORATED IN, OR HAVE A REGISTERED OFFICE IN ANY SANCTIONED TERRITORY (AS DEFINED BELOW, AND ANY SUCH PERSON OR ENTITY FROM A SANCTIONED TERRITORY, A “SANCTIONED PERSON”). WE DO NOT MAKE EXCEPTIONS; THEREFORE, IF YOU ARE A U.S. PERSON, THEN DO NOT ATTEMPT TO USE THE APP OR PROTOCOL, AND IF YOU ARE A SANCTIONED PERSON, THEN DO NOT ATTEMPT TO USE ANY OF THE SERVICES, USE OF A VIRTUAL PRIVATE NETWORK (”VPN”) TO CIRCUMVENT THE RESTRICTIONS SET FORTH HEREIN IS PROHIBITED. # General Please review Disclaimer: Risk of Using Protocol and Terms of Service before using the Yeti Finance and/or interacting with YETI or YUSD. Yeti Finance & YETI/YUSD are not available in the U.S. ### **What is** Yeti Finance**?** Yeti Finance is a decentralized borrowing protocol that allows users to borrow against their entire portfolio of assets on Avalanche. Loans are paid out in YUSD (a USD pegged stablecoin) and need to maintain a [minimum collateral ratio](/how-does-yeti-finance-work/borrowing#what-is-the-minimum-collateral-ratio-mcr-and-the-recommended-collateral-ratio) varies per asset but can be as low as 105%. Yeti Finance will support borrowing against: * Base level assets (WAVAX, WETH.e, WBTC.e, LINK.e, JOE) * Staked assets e.g. sJOE * Trader Joe and Curve LP tokens * Deposited collateral on the Benqi, Aave, and Banker Joe lending markets. Yeti Finance is decentralized and completely non-custodial. Please read our [DISCLAIMERS: RISK OF USING PROTOCOL](broken://pages/4tPZfPtJELu0WIwMB5ph) before using our protocol and interacting with YETI or the YUSD token. ### **What is the motivation behind** Yeti Finance**?** Yeti Finance creates a more capital efficient way to borrow stablecoins by using yield-bearing assets as collateral. Yeti Finance’s key benefits include: * [Minimum Collateral Ratio](/how-does-yeti-finance-work/borrowing#what-is-the-minimum-collateral-ratio-mcr-and-the-recommended-collateral-ratio) as low as 105% resulting in higher loan to value ratios and higher liquidation thresholds resulting in more efficient usage of deposited assets. * Yield bearing assets can be used to generate extra yield while safely providing collateral * Directly [redeemable](/how-does-yeti-finance-work/redemptions-and-yusd-price-stability#what-are-redemptions) — YUSD can be redeemed at face value for the underlying collateral at any time * Portfolio Borrowing — Rather than one individual debt position for each of your assets (as with Abracadabra), users can borrow against all their assets at once. This means if one individual asset goes down in value, but other ones go up, the overall value of your collateral will remain high and you will not be at risk of liquidation. ### What are YUSD and YETI? YUSD is the USD-pegged stablecoin used to pay out loans on the Yeti Finance protocol. At any time it can be redeemed against the underlying [collateral](/how-does-yeti-finance-work/borrowing#what-do-you-mean-by-collateral) at face value. Learn more about the [stability mechanism](/how-does-yeti-finance-work/stability-pool-and-liquidations). YETI is the secondary token issued by Yeti Finance. The total YETI supply is capped at `500,000,000 tokens`. For more information on how the tokens are allocated and released over time, check out our tokenomics: [YETI Rewards and Tokenomics](/yeti-and-yusd/yeti-rewards-and-tokenomics). ### Does Yeti Finance have any fees? Borrowers pay two types of one-time fees: a one-time deposit fee on deposited collateral into the platform, and a one-time borrow fee when new YUSD debt is extended. Deposit fees are demand-driven. Their purpose is to disincentivize too much risky collateral from backing YUSD. As a given risky collateral type makes up a higher percentage of the overall collateral of Yeti, the fees on it increase. This more market-driven approach allows Yeti Finance to capture revenue commensurate with the demand for borrowing against these risky collateral types. \ \ Deposit and Borrow fees are simply added to your YUSD debt amount. When/if you want to pay down your debt, you'll pay the fee amount at that time. The third fee in the Yeti Finance protocol is interest. Each day, interest is applied based on the collateral makeup of a borrower's trove, increasing their YUSD Debt amount. Additionally, not related to borrowing, there are also redemption fees. At any time, YUSD can be redeemed for $1 worth of collateral. This process is called a 'redemption,' and there is a variable fee charged on this process which is a minimum of 0.5%. Redemption fees increase during periods where there is significant redemption demand, and then decay back down again when fewer redemptions are occurring. Redemption fees are paid by the user who redeems, not the borrower who is being redeemed against. The redemption fee is directed to the borrower who is redeemed. All fees are paid in YUSD. ### How can I utilize Yeti Finance? There are multiple ways to use Yeti Finance: * Depositing and borrowing against your crypto assets * Deposit YUSD to the [Stability Pool](/how-does-yeti-finance-work/stability-pool-and-liquidations) and earn liquidation gains (in the form of collateral) and YETI rewards. * Provide liquidity on Trader Joe's for [YUSD](https://avax.curve.fi/factory/69) or [YETI](https://traderjoexyz.com/pool/0x77777777777d4554c39223c354a05825b2e8faa3/AVAX) or on [Curve for YUSD](https://avax.curve.fi/factory/69). * More Details [here](broken://pages/DFt7NWatgfivNJmI82pD) # Borrowing Please review Disclaimer: Risk of Using Protocol and Terms of Service before using the Yeti Finance and/or interacting with YETI or YUSD. Yeti Finance & YETI/YUSD are not available in the U.S. ### Why Borrow With Yeti Finance: Due to minumum collaterals ratios as low as 105%, the Yeti Finance protocol offers more capital efficiency than other borrowing systems (i.e. less collateral is needed for the same loan). ### Borrowing Process: Borrowing is pretty straightforward if you understand a couple key things. Users of Yeti Finance can create a trove by depositing collateral assets and borrow our stablecoin, YUSD. After you pay back your borrowed YUSD, you can withdraw your deposited collateral. Until then, your collateral is held in Yeti Finance as backing for the issued YUSD and a guarantee that the YUSD debt will be paid back. There is a requirement for a minimum debt of 2000 YUSD. You can take out a loan if the "[Risk-Adjusted Value](/how-does-yeti-finance-work/definitions#risk-adjusted-value)**"** of your collateral is greater than 110% (or 1.1 times) your borrowed YUSD. The more collateral deposited, and the more safe vs. risky collateral you put in, the higher the "[Risk-Adjusted Value](/how-does-yeti-finance-work/definitions#risk-adjusted-value)." The ratio between collateral and debt in your trove is called your trove's "**Individual Collateral Ratio**" (ICR) and is displayed here: ![Viewing your trove's collateral ratios on the Borrow and Dashboard Pages](/files/3ZXZCGBQ4QFl33JQIpKZ) ### Liquidations: If your collateral drops in price, it will cause your Risk-Adjusted Value to drop, and potentially may make your trove eligible for liquidation. Luckily, stablecoin collaterals should not drop in value as long as the component stablecoins remain pegged. So borrowing against stablecoins is a good way to avoid liquidation no matter what happens in the markets. There are two system modes, **Normal Mode** and **Recovery Mode**. We expect the system to remain in normal mode the vast majority of the time. Recovery mode is an edge case in case of a large systemic drop in collateral value. Recovery mode happens if the [Total Collateral Ratio](/how-does-yeti-finance-work/definitions#total-collateral-ratio) (TCR) falls below 150%. The TCR is displayed on the Dashboard page under "System Collateral Ratio."\ \ In both Normal and Recovery Mode, you will be eligible for liquidation if your trove's collateral ratio is below 110%. But in Recovery Mode you are also eligible for liquidation if your [AICR](/how-does-yeti-finance-work/definitions#adjusted-individual-collateral-ratio-aicr) (Adjusted Individual Collateral Ratio) is less than TCR.
Trove StatusNormal ModeRecovery Mode
ICR < 110%LiquidationLiquidation
110% < ICR
and
AICR < TCR		Can't be liquidatedLiquidation
110% < ICR
and
150% < AICR		Can't be liquidatedCan't be liquidated
So if you keep your **ICR above 110%** and **AICR above 150%**, your trove can never be liquidated under normal mode or recovery mode. \
# Stablecoin Borrowing In-depth overview on borrowing with yield-bearing stables **Liquidation Risk** Pure yield-bearing stablecoin borrowing come with low liquidation risk because the dollar value of this collateral shouldn't drop. Low collateral ratio stablecoin strategies have lesser liquidation risk both in **Normal Mode** and **Recovery Mode.**
In both Normal and Recovery Mode, you will be eligible for liquidation if your trove's collateral ratio is below 110%. But in Recovery Mode you are also eligible for liquidation if your [AICR](/how-does-yeti-finance-work/definitions#adjusted-individual-collateral-ratio-aicr) (Adjusted Individual Collateral Ratio) is less than the TCR.
Trove StatusNormal ModeRecovery Mode
ICR < 110%LiquidationLiquidation
110% < ICR
and
AICR < TCR		Can't be liquidatedLiquidation
110% < ICR
and
150% < AICR		Can't be liquidatedCan't be liquidated
If you keep your **ICR above 110%** and **AICR above 150%**, your trove can never be liquidated under normal mode or recovery mode. Stablecoin collaterals have ratios of above 1.5 for the AICR calculation, which means a lower ICR trove is not going to be eligible for liquidation in recovery mode. For example if you have $10k of YUSD debt along with $11k in stablecoin collateral, say with safety ratio of 1.05, your ICR will be 115.5% and your AICR will be 176% (Assuming adjusted ratio 1.6).\ \ **For stablecoin troves, if your trove ICR is above 110%, your AICR will be above 150% too, meaning you can't be liquidated in Recovery Mode or in Normal Mode.** \ \ A basic guideline would be keeping some safety threshold in case there are small movements in the stablecoin price . ### TLDR: If your stablecoin trove is at ICR > 115%, liquidation risk will be low unless the stablecoin collateral depegs, in both normal and recovery mode.\ \ \
# Borrowing FAQ Please read our DISCLAIMERS: RISK OF USING PROTOCOL before using our protocol and/or interacting with YETI or the YUSD token. ### **What do you mean by collateral?** Collateral is any asset which a borrower must provide to take out a loan, acting as a security for the debt. ### What is your trove's ICR (individual collateral ratio)? This is the ratio between the "risk-adjusted value" in your Trove and its debt in YUSD. The risk-adjusted value (RAV) takes into account the dollar value of your collateral, as well as a safety ratio to account for how risky the collateral is. Higher risk collateral has a lower safety ratio, meaning a lower RAV. {% hint style="info" %} Risk-Adjusted Value = Safety Ratio \* Price \* Collateral Amount {% endhint %} There are multiple classes of collateral, with highly liquid and trusted collateral having a safety ratio of 1.0 and more risky collateral having a safety ratio of 0.8 or 0.5. All non-stablecoin collateral has a safety ratio between 0 and 1. Stablecoin collaterals have a safety ratio up to 1.1, which allows you to borrow at an effective collateral ratio of less than 110%. Your individual collateral ratio will fluctuate over time as the prices of your collateral change. You can influence the ratio by adjusting your Trove’s collateral and/or debt — i.e. adding more collateral or paying off some of your debt. For example: Let’s say the current value of one ETH-AVAX JLP is `$1,000` and you decide to deposit `30 JLP`. Say ETH-AVAX JLP has a multiplier of `0.8`. This means your risk-adjusted collateral value is `$1,000 * 30 * 0.8 = 24,000`. If you borrow `10,000 YUSD`, then the collateral ratio for your Trove would be `Collateral Value / Debt = 24,000/10,000 = 240%`. If you instead took out `20,000 YUSD` that would put your trove's collateral ratio at `24,000/20,000 = 120%`. ### How can you offer a collateral ratio as low as 110%? Yeti Finance allows for instantaneous, more efficient liquidations. Anyone can call a function to liquidate a trove whose collateral ratio falls below 110% MCR. When the liquidate function is called, YUSD is transferred from the stability pool in order to repay the debt and the trove’s collateral is transferred to the stability pool. Anyone can run a liquidation bot or call liquidate to receive liquidation rewards. Liquidators receive a reward of 200 YUSD + 0.5% of the collateral from the trove. Other lending protocols require a higher collateral ratio because they rely on auction mechanisms or outside liquidators to purchase collateral instead of a utilizing a safer native liquidation system. ### **Do I have to pay fees as a borrower?** Yeti Finance charges borrowing fees. There are two types of fees one-time fees for borrowers. First, there is a deposit fee when you add collateral to Yeti Finance. Second, is a one-time borrow fee when new YUSD debt is issued. Deposit fees depend on the type of collateral you are adding. If you are adding a "risky" collateral type which is already starting to back a significant amount of YUSD, the deposit fee will be higher. Borrow fees are based on redemption volume. If more redemptions are happening (which means YUSD is likely trading at less than 1 USD), the borrowing fee would continue to increase, discouraging borrowing. Under normal conditions, the one-time borrow fee is confined to a range between `0.5%` and `5%`. If redemptions are occurring, this suggests `YUSD Price < $1`, so fees are higher to disincentivize borrowing and de-incentivize more YUSD from entering the market. However, the borrow fee is`0%` during [Recovery Mode](/how-does-yeti-finance-work/recovery-mode). Additionally there is interest on borrowed YUSD, which depends for each user based on the collateral makeup of their trove. Interest is paid in YUSD and the additional interest accrues once per day. We also take a cut of yield generated on collateral deposited in Yeti Finance. More details [here](/how-does-yeti-finance-work/yield-bearing-collateral#how-does-the-protocols-cut-of-yield-work). ### **What is a Trove?** A Trove is where you take out and maintain your loan. Each Trove is linked to an Avalanche address and each address can have just one Trove. If you are familiar with Vaults or CDPs from other platforms, Troves are similar in concept. Troves can hold multiple collateral types as well as a debt denominated in YUSD. You can change the amount of each by adding collateral or repaying debt. As you add/subtract collateral and debt, your Trove’s collateral ratio changes accordingly. You can close your Trove at any time by fully paying off your debt, after which you will receive all collateral back. ### **How can I borrow with** Yeti Finance**?** To borrow, you must deposit a certain amount of collateral to open a Trove. Then you can draw YUSD up to a collateral ratio of `110%`. A **minimum debt** of `2,000 YUSD` is required. ### **When do I need to pay my loan back?** Loans issued by the protocol do not have a repayment schedule. You can leave your Trove open and repay your debt any time, as long as you maintain a collateral ratio of at least `110%`. Interest accruing can increase your debt over time, which users should keep track of to make sure they keep their ICR at a level they are comfortable with. ### **What is the minimum collateral ratio (MCR) and the "recommended" collateral ratio?** The minimum collateral ratio (or MCR for short) is the lowest ratio of collateral to debt that will not trigger a liquidation under normal operations (aka Normal Mode). This is a protocol parameter that is set to `110%`. So if your Trove has a debt `10,000 YUSD`, you would more than `$11,000` worth of collateral to avoid being liquidated. To avoid liquidation during [Recovery Mode](/how-does-yeti-finance-work/recovery-mode), it is recommended to keep ratio comfortably above `150%` (e.g. `200%`). Additionally, if you are worried about redemptions, then check the lowest trove AICR to make sure you are at a comfortable level. ### **What happens if my Trove is liquidated?** You can lose some or all of your collateral as your debt is paid off through liquidation, i.e. you will no longer be able to retrieve your collateral by repaying your debt. In normal mode, a trove can be liquidated if its collateral ratio is less than 110%. In recovery mode, a trove can be liquidated if its collateral ratio is less than 150%. On liquidation, the system will take collateral from your trove up to max of 110% of the value of your debt. Any additional collateral in a liquidated trove will be available for the original trove owner to claim. i.e. if you have $140,000 in collateral in your trove and 100,000 in YUSD debt and your trove gets liquidated, the system will take $110,000 of your collateral and the other $30,000 will still be yours, waiting for you to claim it. ### **What is the Liquidation Reserve?** When you open a Trove and draw a loan, `200 YUSD` is set aside as a way to compensate gas costs for the transaction sender in the event your Trove being liquidated. The Liquidation Reserve is fully refundable if your Trove is not liquidated, and is given back to you when you close your Trove by repaying your debt. The Liquidation Reserve counts as debt and is taken into account for the calculation of a Trove's collateral ratio, slightly increasing the actual collateral requirements. ### **What happens if my Trove is redeemed against?** When YUSD is redeemed, the collateral provided to the redeemer is allocated from the Trove(s) with the lowest collateral ratio (even if it is above `110%`). If at the time of redemption you have the Trove with the lowest ratio, you will give up some of your collateral, but your debt will be reduced accordingly. The USD value by which your collateral is reduced corresponds to the nominal YUSD amount by which your Trove’s debt is decreased. You can think of redemptions as if somebody else is repaying your debt and retrieving an equivalent amount of your collateral. As a positive side effect, redemptions improve the individual collateral ratio of the affected Troves, making them less risky. Redemptions can fully pay off a Trove’s debt. In this case, your Trove is closed, and you can claim your collateral surplus. Redemption fees are paid by the person who redeems, and the full redemption fee goes to the borrower who is redeemed against for the inconvenience. Let’s say you own a Trove with `2` interest bearing tokens(ibTKNs) collateralized and a debt of `3,200 YUSD`. The current price of ibTKN is `$2,000`. This puts your collateral ratio (CR) at `125% (= 100% * (2 * 2,000) / 3,200)`. Let’s imagine this is the lowest CR in the Yeti Finance system and look at two examples of a partial redemption and a full redemption: **Example of a partial redemption** Somebody redeems `1,200 YUSD` for `0.6 ibTKN` and thus repays `1,200 YUSD` of your debt, reducing it from `3,200 YUSD` to `2,000 YUSD`. In return, `0.6 ibTKN,` worth `$1,200`, is transferred from your Trove to the redeemer. Your collateral goes down from `2 to 1.4 ibTKN`, while your collateral ratio goes up from `125%` to `140% (= 100% * (1.4 * 2,000) / 2,000)`. **Example of a full redemption** Somebody redeems `6,000 YUSD` for `3 ibTKN`. Given that the redeemed amount is larger than your debt minus `200 YUSD` (set aside as a Liquidation Reserve), your debt of `3,200 YUSD` is entirely cleared and your collateral gets reduced by `$3,000` of JLP, leaving you with a collateral of`0.5 ibTKN (= 2 - 3,000 / 2,000)`. ### **Why did the collateral and debt of my Trove increase without my intervention?** In rare situations, if Troves are liquidated and the Stability Pool is empty (or gets emptied due to the liquidation), every borrower will receive a portion of the liquidated collateral and debt as part of a redistribution process. A trove can only be redistributed collaterals that it currently holds. I.e. if your trove has no WAVAX, you won't be redistributed WAVAX in the event that a trove with WAVAX gets liquidated while the stability pool is empty. Redistribution of debt occurs in a proportional fashion based on the RAV of collaterals in the trove that is liquidated. Redistributions should not occur under normal system operations, but can occur during black swan events/if the stability pool is not sufficiently filled with YUSD. I.e. if a trove has 20% RAV in WETH and 45% RAV in WAVAX, and 35% RAV in gOHM and gets liquidated, 20% of its debt will be proportionally redistributed to troves with WETH based on their ownership of the total WETH in the system, 45% to troves with WAVAX in the same fashion, and 35% of debt will go to troves with gOHM in the same way. # Yield Bearing Collateral Please review Disclaimer: Risk of Using Protocol and Terms of Service before using the Yeti Finance and/or interacting with YETI or YUSD. Yeti Finance & YETI/YUSD are not available in the U.S. ### What is a Yield Bearing Asset? Yield bearing assets are assets that earn yield. Some examples are LP tokens, Yearn Vault Tokens, aTokens, cTokens, and more. ### Why does Yeti Finance allow Yield Bearing Assets as Collateral? On Avalanche, there are already well-developed lending markets to borrow against base-level assets such as WETH or AVAX. But for many yield-bearing assets, there is no other place to borrow against them. Borrowers on Yeti continue earning rewards that their collateral normally earns while also now being able to borrowing against these assets. ### What Yield Bearing Assets does Yeti Finance Accept? Yeti Finance will be accepting a variety of highly liquid collateral from the largest projects in the Avalanche ecosystem. This includes: * Staked assets e.g. sJOE * Trader Joe and Curve LP tokens * Deposited collateral on the Benqi and Aave lending markets. Yeti Finance will also accept base-level tokens such as WAVAX, WETH, WBTC, and JOE as collateral. Yield-bearing collateral will continue to earn the farming rewards they otherwise would have. For example, Trader Joe LP tokens are staked on behalf of users to continue earning JOE rewards. Similarly, Curve LP tokens used as collateral continue earning any collateral rewards and Avalanche rush incentives. The same is true for collateral from the lending markets listed above. ![](/files/y0ZKcWFPxb4tglr41QIS) ### How does auto-compounding work? The code automatically auto-compounds farming rewards for your collaterals deposited in Yeti. On most collaterals, Yeti Finance takes a cut of the farming reward at the time of the auto-compound. This is true for Curve and Trader Joe LP tokens as well as sJOE. However, for lending market collateral (deposited collateral on Aave or Benqi), Yeti Finance also takes a cut of the rewards generated by the collateral. The site displays yield opportunities net of Yeti's cut of yield, which varies depending on the collateral type. | Collateral | Autocompound/Farm Mechanism | | -------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Joe LP Tokens |

JLP tokens deposited on Yeti earn JOE rewards through the Trader Joe Master Chef Contract.

JOE rewards are sold (auto-compounded) for more LP tokens and the Yeti treasury takes a cut of JOE here.

| | Curve av3CRV LP Tokens |

av3CRV LP tokens deposited on Yeti are deposited in a Curve gauge to accrue WAVAX rewards from Avalanche Rush incentives as well as CRV rewards.

The rewards are sold (auto-compounded) so each av3CRV depositor acquires more LP tokens. The Yeti treasury takes a cut of the WAVAX and CRV rewards on auto-compound.

| | sJOE |

JOE deposited into sJOE accrue USDC yield.

This yield auto-compounded for more JOE tokens which are deposited into sJOE. The Yeti treasury takes a cut of the USDC on each auto-compound.

| | Aave Deposited Collateral |

Aave deposited assets earn WAVAX rewards (from Avalanche Rush) along with an intrinsic interest rate.

The WAVAX is periodically auto-compounded for more aTokens and the Yeti treasury takes a cut on auto-compound. The treasury also takes a cut of the intrinsic yield on these assets.

| | Benqi Deposited Collateral |

Benqi deposited assets earn QI, and WAVAX rewards (from Avalanche Rush) along with an intrinsic interest rate.

The QI and WAVAX is periodically auto-compounded for more qiTokens and the Yeti treasury takes a cut on auto-compound. The treasury also takes a cut of the intrinsic yield on these assets.

It's not possible to utilize qiTokens as collateral on both Benqi and Yeti Finance at the same time.

| | GLP |

GMX's GLP earn trading fees denominated in WAVAX, and esGMX rewards for staking.

The WAVAX is periodically auto-compounded for more GLP, and the Yeti treasury takes a cut on auto-compound.

esGMX has a vesting period, or it can be staked to earn more WAVAX rewards. Instead of vesting, the code automatically stakes esGMX to earn more WAVAX rewards, to earn more GLP.

| # Redemptions and YUSD Peg Please review Disclaimer: Risk of Using Protocol and Terms of Service before using Yeti Finance and/or interacting with YETI or YUSD. Yeti Finance & YETI/YUSD are not avaliable in the U.S. Yeti Finance utilizes Liquity’s unique economic incentives to create a robust and scalable stablecoin. How does YUSD closely follow the price of USD? The ability to redeem YUSD for collateral at face value (i.e. 1 YUSD for $1 of collateral) and to mint YUSD at a `103%` against USDC create a price floor and price ceiling (respectively) through arbitrage opportunities. We call these "hard peg mechanisms" since they are based on direct processes. YUSD also benefits from less direct mechanisms for USD parity — called "soft peg mechanisms". As redemptions increase (implying YUSD is below $1), so too does the `baseRate` — making borrowing less attractive which keeps new YUSD from hitting the market and driving the price below $1. Another of these mechanisms is parity as a Schelling point. Since Yeti Finance treats 1 YUSD as being equal to 1 USD, parity between the two is an implied equilibrium state of the protocol. ### What are redemptions? A redemption is the process of exchanging YUSD for collateral at face value, as if 1 YUSD is exactly worth $1. That is, for x YUSD you get x Dollars worth of collateral in return. Users can redeem their YUSD for collateral at any time without limitations. However, a redemption fee is charged. For example, if the current redemption fee is 1%, the price of collateralTokenA is $500 and you redeem 100 YUSD, you would get 0.2 collateralTokenA and pay a redemption fee of 1 YUSD (1% of redeemed amount). The larger the redemption amount, the larger the redemption fee. This fee is paid by the redeemer. ### How can I avoid being redeemed against? The best way to avoid being redeemed against is by maintaining a high collateral ratio relative to the rest of the Trove's in the system. Remember: the riskiest Troves (i.e. lowest collateralized Troves) are first in line when a redemption takes place. The first trove to be redeemed against has the lowest Adjusted Individual Collateral Ratio ([AICR](/how-does-yeti-finance-work/definitions#adjusted-individual-collateral-ratio-aicr)). This depends on the makeup of your trove, and users with more stablecoins in their trove have higher AICRs. This feature is intended to make redemptions occur on stablecoins only above the TCR mark for Recovery mode, and to make the borrowing experience for stablecoin depositors better. Make sure you are aware of your AICR before opening your trove if you are worried about being redeemed against. ### Is a redemption the same as paying back my debt? No, redemptions are a completely separate mechanism. All one has to do to pay back their debt is adjust their Trove's debt and collateral. ### How is the redemption fee calculated? Under normal operation, the redemption fee is given by the formula `(baseRate + 0.5%) * collateral_drawn` ### How is the `baseRate` calculated? Redemption fees are based on the `baseRate` state variable in Yeti Finance, which is dynamically updated. The `baseRate` increases with each redemption, and decays according to time passed since the last fee event - i.e. the last redemption or issuance of YUSD. Upon each redemption: * `baseRate` is decayed based on time passed since the last fee event * `baseRate` is incremented by an amount proportional to the fraction of the total YUSD supply that was redeemed * The redemption fee is given by `(baseRate + 0.5%) * collateral_drawn` ### How can I calculate the redemption fee as an arbitrageur? The fee is paid in YUSD. The YUSD needed to cover the redemption amount and the fee can be calculated using this formula. The YUSD balance needed is represented by $$Z$$ to perform a redemption amount of $$Y$$ ![](/files/cpcB7TPmKwezAzApm8S0) where $$Z = Y + X$$ and * $$BR =$$ decayed Base Rate * $$\beta =$$ 2 * $$S =$$Total YUSD Supply * $$Z =$$ Redeemer balance of YUSD * $$X =$$ YUSD Fee * $$Y =$$Intended redemption amount ### As a borrower, do I lose money if I'm redeemed against? If your Trove is redeemed against, you *do not* incur a net loss. However, you will lose some of your collateral exposure. Your Trove's collateral ratio will also improve after a redemption. To compensate for this change, the full redemption fee is given back to the user who is redeemed against. What about staked ibTKN rewards that the Trove owner has accumulated, but not redeemed? Yeti will unstake the ibTKNs properly so that the Trove owner will receive the interest rewards, and the ibTKNs will be then given to the redeemer. Since base ibTKN rewards are accounted for in the price, the Trove owner is not incurring any loss due to this property. ### Secondary Redemption Mechanism We also have a secondary redemption mechanism, which is intended to make it easier to arbitrage YUSD which raises the effectively YUSD price floor. The secondary mechanism allows you to choose a specific collateral from the bottom trove in the sorted troves array and only redeem against that. So if that bottom trove is collateralized by aUSDC + WAVAX + WETH, you could choose to do a partial redemption and redeem YUSD for just the aUSDC in the trove. After completing this redemption, the trove will likely no longer be the bottom trove in the system and then you can do the same thing to another trove. The redeemer can only perform this on one trove, and one collateral at a time. This will make it easier to arb the peg if YUSD trades below $1 due versus being forced to arbitrage against multiple types of assets. **Peg Stability Module** The Peg Stability Module is a smart contract which allows for the swap of YUSD to USDC or USDC to YUSD at a 1 to 1 ratio before fees provided there is available capacity. USDC that is stored in the PSM is deposited into Aave. \
# Recovery Mode Please review Disclaimer: Risk of Using Protocol and Terms of Service before using the Yeti Finance and/or interacting with YETI or YUSD. Yeti Finance & YETI/YUSD are not available in the U.S. ### What is Recovery Mode? Recovery Mode kicks in when the Total Collateral Ratio (TCR) of the system falls below `150%`. During Recovery Mode, Troves with a "Adjusted Collateral Ratio" (AICR) **below the TCR of the system** are eligible to be liquidated as well as those with ICR < 110%. **Stablecoin troves are still safe during recovery mode.** Since this uses Adjusted Collateral Ratio, troves with purely stablecoins as collateral are not subject to these conditions due to having a higher AICR. See below for more information on adjusted safety ratios. Moreover, the system blocks borrower transactions that would further decrease the TCR. New YUSD may only be issued by adjusting existing Troves in a way that improves their collateral ratio, or by opening a new Trove with a collateral ratio`>=150%`. In general, if an existing Trove's adjustment reduces its collateral ratio, the transaction is only executed if the resulting TCR is above `150%`. ### What is the Adjusted Collateral Ratio? A trove's Adjusted Individual Collateral Ratio or AICR is a ratio between collateral and debt giving additional weight to stablecoins. {% hint style="info" %} ARAV = Adjusted\_Safety\_Ratio \* Price \* Collateral\_Amount {% endhint %} {% hint style="info" %} AICR = ARAV / Trove\_Debt {% endhint %} This calculation is similar to the Risk-Adjusted Value calculation except with a different ratio for each collateral. Stablecoin collaterals have an Adjusted Safety Ratio of 1.6 while other assets will have System Ratio = Safety Ratio. The idea is that we are comfortable with the full system being backed by low collateral ratio loans against yield-bearing stablecoins. But if YUSD is mostly collateralized by riskier assets, we need a higher dollar value of those assets in the system vs. YUSD issued. ### What is the Total Collateral Ratio? The Total Collateral Ratio or TCR is a number representing system safety and the value of the system collateral vs. the amount of YUSD minted against it. The system will be in "recovery mode" if the TCR is below 150%. This calculation works like the AICR calculations above. {% hint style="info" %} System Collateral Value = Adjusted\_Safety\_Ratio \* Price \* Collateral\_Amount {% endhint %} {% hint style="info" %} TCR = Sum\_of\_System\_Collateral\_Values\_for\_All\_Assets / Total\_YUSD\_Debt {% endhint %} ### What is the purpose of Recovery Mode? The goal of Recovery Mode is to incentivize borrowers to behave in ways that promptly raise the TCR back above 150%, and to incentivize YUSD holders to replenish the Stability Pool. Economically, Recovery Mode is designed to encourage collateral top-ups and debt repayments, and also itself acts as a self-negating deterrent: the possibility of it occurring actually guides the system away from ever reaching it. Recovery Mode is not a desirable state for the system. ### **What are the fees during Recovery Mode?** While Recovery Mode has no impact on the redemption fee, the borrowing fee is set to `0%` to maximally encourage borrowing (within the limits described above). ### **How can I make my Trove safe in Recovery Mode?** By increasing your Adjusted Collateral Ratio to `150%` or greater, your Trove will be protected from liquidation. This can be done by adding collateral, repaying debt, or both. ### Can I be liquidated if my adjusted collateral ratio is below `150%` in Recovery Mode? You can be liquidated in recovery mode if your Trove's adjusted collateral ratio is smaller than the TCR. In order to avoid liquidation in Normal Mode and Recovery Mode, a user should keep their trove collateral ratio (the normal one) above 110% as well as keeping their adjusted collateral ratio above 150%. ### How do liquidations work in Recovery Mode? * ICR = Individual Collateral Ratio * MCR = Minimum Collateral Ratio * TCR = Total Collateral Ratio * SP = Stability Pool | Condition | Liquidation Behavior | | -------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | ICR <=100% | Redistribute all debt and collateral (minus AVAX gas compensation) to active Troves. | | 100% < ICR < MCR & SP YUSD > Trove debt |

YUSD in the Stability Pool is offset with the Trove's debt.

The Trove's collateral (minus AVAX gas compensation) is shared between stability pool depositors.

| | 100% < ICR < MCR & SP YUSD < Trove debt |

The total Stability Pool YUSD is offset with an equal amount of debt from the Trove. A fraction of the Trove's collateral (equal to the ratio of its offset debt to its entire debt) is shared between depositors.

The remaining debt and collateral (minus AVAX gas compensation) is redistributed to active Troves.

| |

MCR <= ICR

& AICR < TCR

& SP YUSD >= Trove debt

|

In this case, the Stability Pool YUSD is offset with an equal amount of debt from the Trove. A fraction of collateral with dollar value equal to 1.1 \* debt is shared between depositors.

Nothing is redistributed to other active Troves. Since its ICR was > 1.1, the Trove has a collateral remainder, which is sent to the CollSurplusPool and is claimable by the borrower. The Trove is closed.

| | MCR <= ICR & AICR < 150% & SP YUSD < Trove debt | Do nothing. Because there is insufficient YUSD in the stability pool to fully offset, this trove is not liquidated | | AICR >= 150% | Do nothing. | ### How much of a Troves collateral can be liquidated in Recovery Mode? Liquidated collateral lost is capped at `110%` of a Trove's debt. Specifically, the dollar value of the collateral sent to the stability pool is a maximum of 110% of the YUSD debt that is offset. Any remainder, i.e. the collateral above `110%`, can be reclaimed by the liquidated borrower using the standard web interface. This means that a borrower will face the same liquidation “penalty” (`10%`) in Recovery Mode as in Normal Mode if their Trove gets liquidated.[
](https://docs.teddy.cash/teddy-staking) # Definitions Terminology ### Yeti Finance Terms #### **Trove:** A user may deposit a basket of assets and open a trove. It is used as backing to mint and withdraw YUSD. Each address may have only one trove and can actively manage it by borrowing more YUSD or repaying its YUSD debt. #### **Debt:** The amount of YUSD you have minted against the collateral in your Trove. #### **Deposit Fee:** This is a one-time fee when collateral is deposited into Yeti. The fee amount varies depending on which collateral and its backing percentage. As backing percentage increases and if the collateral is higher risk, the deposit fee is higher. #### **Redemption Fee:** There is a one-time fee paid on redemptions. This fee is a minimum of 0.5%, with 0.1% going to the trove being redeemed against. **Interest Fee:** There is a fee paid for interest, which updates once per day. The interest a user pays per day is based on the makeup of their trove's collaterals, which may have varying interest rates. #### **Safety Ratio:** Used as a weighting mechanism to give lower risk (less volatile, more liquid) collateral a higher weight in the system compared to higher risk collateral. A high safety ratio means more debt can be issued against the same dollar amount of the asset. More detail is available under "Risk-Adjusted Value" #### **Risk-Adjusted Value (RAV):** RAV value is a way for the system to weight collateral risk. For some dollar value of collateral, safer collateral has a RAV relative to risky collateral. The risk-adjusted value depends on the collateral's safety ratio. Safety ratios must be between 0 and 1.1. Stable collateral (i.e. qiUSDC, aUSDC, av3CRV) can have a safety ratio between 1 and 1.1, but all other collateral has a safety ratio between 0 and 1. {% hint style="info" %} Risk-Adjusted Value = Safety ratio \* Token amount \* Token Price in USD {% endhint %} * For example, I have 1000 JOE at a price of $2.75 with a safety ratio of 0.8. * Risk-Adjusted Value = 0.8 \* 1000 \* 2.75 = 2200 RAV #### **Stability Risk-Adjusted Value (sRAV):** sRAV value is a way for the system to weight collateral risk while also accounting for the benefits of utilizing stablecoin collateral. The calculation of sRAV is exactly the same for non-stable collateral. But the sRAV of stablecoin collaterals utilizes a safety ratio of 1.6 rather than the actual safety ratio. **For Non-Stable Collaterals** {% hint style="info" %} Stability Risk-Adjusted Value = Safety ratio \* Token amount \* Token Price in USD {% endhint %} * For example, I have 1000 JOE at a price of $2.75 with a safety ratio of 0.8. * Stability Risk-Adjusted Value = 0.8 \* 1000 \* 2.75 = 2200 RAV **For Stablecoin Collaterals** {% hint style="info" %} Stability Risk-Adjusted Value = **1.6** \* Token amount \* Token Price in USD {% endhint %} * For example, I have 1000 av3CRV at a price of $1.03: * Stabillity Risk-Adjusted Value = 1.6 \* 1000 \* 1.03 = 1648 sRAV Current Stablecoin Collaterals (ones that use this 1.6 ratio) are: USDC, qiUSDC, av3CRV #### **Individual Collateral Ratio (ICR):** Ratio of the Risk-Adjusted Value of a borrower's trove collateral compared to their debt. Troves are eligible for liquidation if their individual collateral ratio drops below 110%. {% hint style="info" %} Individual Collateral Ratio = RAV of Trove's Collateral / Debt in Trove {% endhint %} * For example, I have 1000 JOE at a price of $2.75 with a safety ratio of 0.8. This has a RAV of 2200. I have taken out 2000 YUSD in debt. * Individual Collateral Ratio = 2200 RAV / 2000 YUSD = 110% #### **Adjusted Individual Collateral Ratio (AICR):** Ratio of the Stability Risk-Adjusted Value of a borrower's trove collateral compared to their debt. This is utilized for determining whether a trove is eligible for liquidation during **Recovery Mode**. {% hint style="info" %} Adjusted Individual Collateral Ratio = sRAV of Trove's Collateral / Debt in Trove {% endhint %} #### **Total Collateral Ratio:** The TCR is the System's Stability Risk Adjusted Value ([sRAV](#risk-adjusted-value-rav-1)) over the total YUSD debt. When TCR is below 150% the system enters recovery mode. By using sRAV, even all the troves are low collateral stablecoin troves, the system will still not hit recovery mode. {% hint style="info" %} TCR = System sRAV / Total YUSD Debt {% endhint %} #### **Backing Percent:** How much of the protocol is backed by that particular asset. If the system has RAV of $1,000,000 and it has $10,000 RAV of JOE, then it has 1% backing percent of JOE. #### **Recovery Mode:** The system goes into recovery mode when the Total Collateral Ratio of the system is under 150%. The system blocks borrower transactions that would further decrease the TCR. This means that borrowers may not withdraw collateral or borrow YUSD during recovery mode. ### Other Useful Definitions **Stablecoin** - Stablecoins are cryptocurrencies that are designed to be stable in price. Often times their market values will be pegged to some external reference such as the US dollar. **Peg** - When something is pegged, it means that it is fixed to an amount at a particular level. For example, YUSD is pegged to 1 USD and should remain fixed to the price of 1 USD. **Annual percentage rate (APR)** - APR is expressed as a percentage that represents the monetary value or reward that investors are expected to earn. This includes any fees or additional cots associated, but does not take compounding into account. **Staking** - Staking is the process of locking up tokens in exchange for rewards for securing a protocol. By staking your assets, you support the blockchain network and help confirm transactions. **Arbitrage** - Arbitrage is the process of purchasing and selling the same asset in different markets in order to profit from the difference in the listed prices. By profiting through exploiting market inefficiencies, it inadvertently resolves the price in different markets. **High-risk collateral** - High-risk collateral refers to assets with high price volatility. These collateral types will have a lower safety ratio assigned to them because liquidation risk are higher due to fluctuations in price. # Stability Pool and Liquidations Please review Disclaimer: Risk of Using Protocol and Terms of Service before using the Yeti Finance and/or interacting with YETI or YUSD. Yeti Finance & YETI/YUSD are not available in the U.S. ### What is the Stability Pool? The Stability Pool is the first line of defense in maintaining system solvency. It achieves that by acting as the source of liquidity to repay debt from [liquidated](#what-are-liquidations) troves—ensuring that the total YUSD supply always remains backed. When any [Trove](/how-does-yeti-finance-work/borrowing#what-is-a-trove) is liquidated, an amount of YUSD corresponding to the remaining debt of the Trove is burned from the Stability Pool’s balance to repay its debt. In exchange, the entire collateral from the Trove is transferred to the Stability Pool. The Stability Pool is funded by users transferring YUSD into it (called Stability Providers). **Over time Stability Providers lose a pro-rata share of their YUSD deposits, while gaining a pro-rata share of the liquidated collateral**. However, because Troves are likely to be liquidated at just below `110%` collateral ratios, it is expected that Stability Providers will receive a greater dollar-value of collateral relative to the debt they pay off. ### Why should I deposit YUSD to the Stability Pool? Stability Providers will make liquidation gains ([see below](#how-do-i-benefit-as-a-stability-provider-from-liquidations)) and receive early adopter rewards in form of YETI tokens. ### What are liquidations? To ensure that the entire stablecoin supply remains fully backed by collateral, [Troves](/how-does-yeti-finance-work/borrowing#what-is-a-trove) that fall under the minimum collateral ratio of `110%` will be closed (liquidated). The debt of the Trove is canceled and absorbed by the Stability Pool and its collateral distributed among Stability Providers. The owner of the Trove still keeps the full amount of YUSD borrowed but loses `~10%` value overall hence it is critical to always keep the ratio above `110%`, ideally above `150%`. ### Who can liquidate Troves? Anybody can liquidate a Trove as soon as it drops below the Minimum Collateral Ratio of `110%`. The initiator receives a gas compensation (`200 YUSD` + `0.5%` of the Trove's collateral) as reward for this service. ### How am I compensated for liquidating a Trove? The liquidation of Troves is connected with certain gas costs which the initiator has to cover. The cost per Trove was reduced by implementing batch liquidations of up to 160 **-** 185 Troves but with the aim of ensuring that liquidations remain profitable even in times of soaring gas prices the protocol offers a gas compensation given by the following formula: `gas compensation = 200 YUSD + 0.5% of Trove's collateral` The `200 YUSD` is funded by a [Liquidation Reserve](/how-does-yeti-finance-work/borrowing#what-is-the-liquidation-reserve) while the variable `0.5%` part comes from the liquidated collateral, slightly reducing the liquidation gain for Stability Providers.� ### How do I benefit as a Stability Provider from liquidations? As liquidations happen just below a collateral ratio of `110%`, you will most likely experience a net gain whenever a [Trove](/how-does-yeti-finance-work/borrowing#what-is-a-trove) is liquidated. Let’s say there is a total of `1,000,000 YUSD` in the Stability Pool and your deposit is `100,000 YUSD`. Now, a Trove with debt of `200,000 YUSD` and collateral of `400 ibTKN` is liquidated at an ibTKN price of `$545`, and thus at a collateral ratio of `109% (= 100% * (400 * 545) / 200,000)`. Given that your pool share is `10%`, your deposit will go down by `10%` of the liquidated debt (`20,000 YUSD`), i.e. from `100,000` to `80,000 YUSD`. In return, you will gain `10%` of the liquidated collateral, i.e. `40 ibTKN`, which is currently worth `$21,800`. Your net gain from the liquidation is `$1,800`. Note that depositors can immediately withdraw the collateral received from liquidations and sell it to reduce their exposure to ibTKN, if the USD value of ibTKN is expected to decrease (for an exception see [Can I withdraw my deposit whenever I want?](#can-i-withdraw-my-deposit-whenever-i-want)). ### How do I benefit as a Stability Provider from early adopter rewards? First you need to open a Trove, borrow YUSD, and deposit it to the Stability Pool. After making your deposit, you will start accumulating a reward (in YETI) proportional to the size of your deposit on a continuous basis. The reward is calculated according to the rewards schedule. Rewards will be the highest for early adopters of the system. At any point in time, you can withdraw your pending rewards to your Avalanche address. ### Can I withdraw my deposit whenever I want? As a general rule, you can withdraw the deposit made to the Stability Pool at any time. There is no minimum lockup duration. However, you cannot withdraw while there are pending liquidatable [Troves](/how-does-yeti-finance-work/borrowing#what-is-a-trove). ### How to withdraw assets from the Stability Pool? There are two ways to withdraw from the stability pool. With the standard withdraw functionality, you will receive YUSD as well as all the pending collaterals (from liquidations) you are eligible to receive. The secondary withdraw function will automatically sell any pending collaterals for YUSD and then send all the YUSD to your wallet. This functionality utilizes an approve "Router" which specifies a path to sell the collateral for YUSD. Down the line, we will be introducing a vault to auto-sell any liquidation rewards for YUSD. ### Can I lose money by depositing funds to the Stability Pool? A trove should always be liquidated prior to the value of its collateral falling below 100% of the value of its debt. As long as that is the case, stability pool depositors should not lose money. In recovery mode, we have an additional check which says that the stability pool is not even involved if a liquidation involves a trove with collateral ratio below `100%`. In this case, the liquidation process does not go through the stability pool and instead debt/collateral is redistributed to active troves. But in the event of an oracle failure or a flash crash, it is possible that the liquidated collateral is worth less than the YUSD taken from the stability pool. In this circumstance, an oracle could report that the trove has a collateral ratio above 100% but this might not actually be the case. This is a situation where you may experience a loss as a Stability Pool Depositor. If YUSD is trading above `$1`, liquidations may become unprofitable for Stability Providers even at collateral ratios higher than `100%`. However, this loss is hypothetical since YUSD is expected to return to the peg, so the “loss” only materializes if you had withdrawn your deposit and sold the YUSD at a price above `$1`. Please note that although Yeti Finance has undergone multiple audits, a hack or a bug that results in losses for the users can never be fully excluded. ### What happens if the Stability Pool is empty when liquidations occur? If the Stability Pool is empty, the system uses a secondary liquidation mechanism called redistribution. In such a case, the system redistributes the debt and collateral from liquidated Troves to all other existing Troves.\ \ A trove can only be redistributed collaterals that it currently holds. I.e. if your trove has no WAVAX, you won't be redistributed WAVAX in the event that a trove with WAVAX gets liquidated while the stability pool is empty. Redistribution of debt occurs in a proportional fashion based on the RAV of collaterals in the trove that is liquidated. I.e. if a trove has 20% RAV in WETH and 45% RAV in WAVAX, and 35% RAV in gOHM and gets liquidated, 20% of its debt will be proportionally redistributed to troves with WETH based on their ownership of the total WETH in the system, 45% to troves with WAVAX in the same fashion, and 35% of debt will go to troves with gOHM in the same way. # Interest Please review Disclaimer: Risk of Using Protocol and Terms of Service before using the Yeti Finance and/or interacting with YETI or YUSD. Yeti Finance & YETI/YUSD are not available in the U.S. #### How are interest rates calculated for each trove? Interest rates differ per collateral, and a user's interest rate depends on their collateral makeup. Imagine collateral 1 comprises 25% of a user's trove, and collateral 2 comprises 75%. C1 has an interest rate of 1%, and C2 has an interest rate of 2%. The user's composite interest rate would be: 25% \* 1% + 75% \* 2% = 1.75%. So, their debt would be charged 1.75% per day, until they adjust their trove and their ratios can change. **When is interest applied?** Interest rates are applied once per day autonomously. This means that once one day has passed, the next action in the protocol will apply interest, for everyone. There is also an external function which anyone can call to tick the interest, once a day has passed. # Token Overview Please review Disclaimer: Risk of Using Protocol and Terms of Service before using the Yeti Finance and/or interacting with YETI or YUSD. Yeti Finance & YETI/YUSD are not available in the U.S. Yeti Finance utilizes a two token system - $YETI and $YUSD. ### What is $YUSD? $YUSD is an over-collateralized USD-pegged stablecoin issued by Yeti Finance. It has multiple mechanisms to keep its price stable and pegged at $1. YUSD can be minted by depositing collateral on Yeti Finance. Learn more about price stability here: [Mechanisms for YUSD Price Stability](/how-does-yeti-finance-work/redemptions-and-yusd-price-stability) ### What is $YETI? $YETI is the Yeti Finance protocol token. ### What is YETI's distribution? **50% Community Incentives:** Liquidity mining incentives, long-term liquidity providers, genesis liquidity providers, and grant programs. **25% Current and Future Team:** This allocation linearly vest over a three year schedule with a 3-month lock. This allocation will be split amongst a core team of eight, non-core contributors, and future team members. **15% Foundation:** Development cost, economic security, smart contract auditing, service providers (legal), operational expenses, and partnerships. **1.17% Strategic Partners:** [Avalanche Foundation](https://www.avax.network/), [Genesis Block Ventures](https://www.gbv.capital/), [Trader Joe,](https://traderjoexyz.com/home#/farm) and the founders of [BENQI ](https://benqi.fi/)([Hansen](https://twitter.com/hn_avax), [JD,](https://twitter.com/benqinomics) [Dan](https://twitter.com/born2hodl?lang=en)) are the partners who have financially and non-financially supported Yeti Finance since the beginning. Strategic partners will have the same vesting schedule as the team and will continue to advise on future growth of the protocol. **8.83% Future Strategic Partners:** This allocation is set aside in the case it would be definitively beneficial to everyone to bring in additional strategic partners. All future partners will be on a vesting schedule. If not used, this 9% will be divided amongst the Foundation and Community Incentives pool. ### What is YETI's emission/vesting schedule? YETI has a max supply of 500,000,000 tokens. Our community emissions schedule will look something similar to the schedule below. The schedule is front-loaded to bootstrap the protocol, with a higher emissions rate for the first 5 months, and then a constant emissions rate for the next four years after that of 5,000,000 YETI emitted per month. Token emissions will begin in April 2022. Emission rates remain subject to change depending on market conditions. ### Projected Community Token Distribution Schedule We will be allocating roughly 70% of all Yeti emissions to stablecoin liquidity for the 6 months of the protocol, 20% to the stability pool, and 10% to Trader Joe pools — and then re-evaluate from there.\ \ Below is our rough targeted emissions schedule, though it is subject to change. The idea is that the first 3 months of the protocol will be a bootstrapping period with elevated emissions, and from then on we will be sticking with a slower, sustainable emissions rate.
MonthEmissions in MonthTotal Emitted
4/16/2218,000,00018,000,000
5/16/22~12,000,00030,000,000
6/14/22~7,000,00037,000,000
7/14/225,000,00042,000,000
8/14/225,000,00047,000,000
9/14/225,000,00052,000,000
.........
# Protocol Security Please review Disclaimer: Risk of Using Protocol and Terms of Service before using the Yeti Finance and/or interacting with YETI or YUSD. Yeti Finance & YETI/YUSD are not avaliable in the U.S. **Smart Contract Security Reports and Partners:** 1. [Dedaub](https://www.dedaub.com/) is a leading smart contract security firm that specializes in complex economic attacks and program analysis. Dedaub has worked with Ethereum, Chainlink and Nexus Mutual. They most notably reported the $1B vulnerability in Multichain's Bridge. [Audit Report 1](https://docs.google.com/document/d/1i3PWxOCt_EaFU51aI1YOgWkmPp0EbsV3d3G_ZtvS4Ko/edit) and [Audit Report 2](https://docs.google.com/document/d/1DxfCo6KqfKOJfmlQmAlb2UySyFaMDwBNKkDo_nZPIsw/edit). 2. [Three Sigma Labs](https://threesigma.xyz) is a conomic modeling and smart contract auditing firm. They have assisted us with mechanism design, validating mechanisms with economic models, and reviewing implementations with code audits. [Audit Report.](https://drive.google.com/file/d/1fpU4V-9iQKUTXRd8ZvmSThdib44bA4xi/view?usp=sharing) 3. [Haechi](https://audit.haechi.io/) is a South Korean smart contract security audit firm. Haechi has audited major DeFi protocols such as SushiSwap, 1inch Exchange, and Armor Finance. [Audit Report.](https://docs.google.com/document/d/1qYVwps1KgUxdmOoKFdgTDmhhMk4fY9tf0ukYxOAf_CQ/edit) 4. [Code Arena](https://code4rena.com/) is a community-driven approach to smart contract auditing. Yeti Finance hosted a [$100,000 ](https://code4rena.com/contests/2021-12-yeti-finance-contest)Code Arena audit contest in which the full prize pool is distributed to participants which include some of the the leading blockchain security researchers and audit firms. [Audit report. ](https://code4rena.com/reports/2021-12-yetifinance/) 5. [WatchPug](https://www.watchpug.org/) is a research and audit firm focusing on DeFi security. They are second on the Code Arena Leaderboard and have been rewarded with numerous large bug bounties. **Independent Auditors** In addition to the above security measures, we had multiple independent security auditors peer review our smart contract code for any potential vulnerabilities and exploits. **Economic Security:** 1. [Three Sigma Labs](https://threesigma.xyz/) was engaged to create an extensive report analyzing the economic soundness of Yeti Finance's system. A detailed economic model based off Yeti Finance system, and thousands of simulations were done to stress test our protocol under various intense market conditions. [63-page economic modeling report. ](https://drive.google.com/file/d/1RPCv7n91vZQh-KNgoYpLv9N3oPVt4yDJ/view?usp=sharing) 2. [Risk Harbor](https://twitter.com/riskharbor), a leading DeFi smart-contract insurance protocol, has audited our liquidity provider oracles and asset wrappers to help prevent price oracle manipulation. Despite best efforts, crypto is inherently risky and security is never guaranteed. Please review Disclaimer: Risk of Using Protocol and Terms of Service before using the Yeti Finance and/or interacting with YETI or YUSD. Yeti Finance & YETI/YUSD are not available in the U.S. # Contract Addresses Please review Disclaimer: Risk of Using Protocol and Terms of Service before using the Yeti Finance and/or interacting with YETI or YUSD. Yeti Finance & YETI/YUSD are not available in the U.S. See the user docs for contract addresses: # Bug Bounty Program Security is Yeti Finance's top priority. We've spent hundreds of thousands of dollars in security in efforts to create a truly innovative decentralized borrowing protocol and have had an extensive number of audits from firms and independent auditors alike. [Audits here.](/about-yeti-finance/audits-and-risks) Our lucrative bug bounty program rewards anyone who is able to find a security issue or critical vulnerability within our codebase. If you find any bugs or serious vulnerabilities in Yeti Finance's codebase, please email for disclosures or contact @RoboYeti or @TrucoYeti on telegram. # Collateral Integration Process Please review Disclaimer: Risk of Using Protocol and Terms of Service before using the Yeti Finance and/or interacting with YETI or YUSD. Yeti Finance & YETI/YUSD are not avaliable in the U.S. Before whitelisting any new collaterals, our team follows a 3-step process.\ \ It starts out with an internal review: a deep dive on the protocol's codebase, review of codebase audits/any economic security work done, and finally technical interviews with the team to address any concerns. Then, we bring the collateral to Three Sigma Labs. They do another in-depth, independent review that consists of smart contract analysis, economic security assessment, and governance risk analysis. From there we work together to determine if it is safe to integrate. We are very aware of past exploits in lending protocols i.e. CREAM. And as a result, we're thorough in our security analysis, which includes auditing the oracles and price feeds that we utilize. After the initial bootstrapping period (first few weeks after launch), all integrations will be announced 1-week prior to gather feedback and discuss potential objections from partners and community members. \ \ Post integration, both us and Three Sigma Labs conduct on-going collateral health and safety ratio monitoring; if we detect any anomalies or risk, we re-adjust the borrowing caps and can deprecate collateral (prevent adding more to the system) when appropriate. Howevever, best efforts, crypto is inherently risky and security is never guranteed. Please review the associated protocol disclaimers and ToS for more information. # Integrations #### Exchanges and farms: * YETI Liquidity Pool on Trader Joe: * YUSD Liquidity Pool on Curve:\ * YUSD Liquidity Pool on Platypus:\ * YUSD Liquidity Pools on KyberSwap\ Please read our [DISCLAIMERS: RISK OF USING PROTOCOL](broken://pages/4tPZfPtJELu0WIwMB5ph) before using our protocol and interacting with YETI or the YUSD token. #### # Contract Interaction Through Snowtrace Please review Disclaimer: Risk of Using Protocol and Terms of Service before using the Yeti Finance and/or interacting with YETI or YUSD. Yeti Finance & YETI/YUSD are not available in the U.S. This guide is included in the Yeti Finance documentation as a backup in case the hosted frontend at is having problems in any way, or if users would like to interact with the contracts directly. # Trove Operations Page under construction! # Stability Pool Page under construction! # Liquidation Page under construction! # Redemption Please review Disclaimer: Risk of Using Protocol and Terms of Service before using the Yeti Finance and/or interacting with YETI or YUSD. Yeti Finance & YETI/YUSD are not available in the U.S. Redemptions can be read about more[ ](/how-does-yeti-finance-work/redemptions-and-yusd-price-stability)[here](/how-does-yeti-finance-work/redemptions-and-yusd-price-stability). This page will outline one way to conduct a redemption through snowtrace, in addition to how to estimate fees through Tenderly if doing multiple transactions. DISCLAIMER: This is purely a guide and all users should both understand the actions which they are submitting to the avalanche blockchain, and double check all addresses which they are interacting with. All official Yeti Finance contract addresses are listed at this link: . ### Submitting a Redemption Through Snowtrace #### Overview Open snowtrace.io and navigate to the page with *TroveManager,* address found at the link above. The direct link is here: Navigate to the "Contract" tab and then to the "Write as Proxy" tab. Connect your metamask wallet, and look for the function "redeemCollateral", which should look as the image below. ![](/files/vDf7Y3p96X5uRQRzuIok) The parameter descriptions are as follows: * \_YUSDamount: The amount of YUSD you are attempting to redeem, after the fee is deducted. * \_YUSDMaxFee: The maximum fee in YUSD which you are willing to redeem. * \_firstRedemptionHint: The hint for the address of the first trove to be redeemed in the sortedTrove list. * \_upperPartialRedemptionHint: The upper hint for the position of the last partially redeemed trove in the sortedTroves list. * \_lowerPartialRedemptionHint: The lower hint for the position of the last partially redeemed trove in the sortedTroves list. * \_partialRedemptionHintAICR: The Adjusted Individual Collateral Ratio of the last partially redeemed trove in the sortedTroves list * The maximum number of iterations to perform. If zero, the function will run until it runs out of gas. #### YUSD Amount The amount of YUSD which are to be taken from your wallet during the transaction are bounded by YUSDAmount and YUSDMaxFee. For example, if you are trying to redeem 1,010 YUSD, and the fee is 1%, then the YUSDAmount will be 1,000 and the YUSDMaxFee will be 10; save these numbers to input into the "RedeemCollateral" function for later. If your redemption amount is small relative to the YUSD supply, the fee will likely be just a bit over 0.5%, so you can estimate that as 0.51% to input. If there has been redemption activity before this, or if you are doing a large amount, and would like to estimate the fee better, see the tenderly section below. #### Redemption hints Redemption hints are just precautions to reduce gas, moving computation off chain before doing the transaction. So if these are incorrect the transaction will still likely be able to proceed. To get estimates of these, use the *HintHelpers* contract, which just fetches some information from chain and does some computation. Check the link above to verify the address, but it will just be a view function here anyway. The direct link is here: Head over to "Contract" and then "Read Contract". Open the function "getRedemptionHints". There are two parameters, which will are the same \_YUSDAmount which you have calculated from above, as well as the maxIterations parameter, which you can input some large number like 100,000. An example is as follows, for 1000 YUSD. Remember that 1000 YUSD actually means 1000e18 = 1000000000000000000000 when input into snowtrace, due to the decimal precision of the YUSD token: With the outputs, you will need to do the following: * firstRedemptionHint is used in the "RedeemCollateral" function call, so save that for later. * partialRedemptionHintAICR is used in the "RedeemCollateral" function call, so save that for later. * If truncatedYUSDAmount does not equal your input YUSD Amount, then increase the input amount by 2000 YUSD. The minimum debt for a trove is 2000 YUSD, so if a partial redemption would put a trove below that amount it will cut it off before the 2000 is reached. For example, if you are trying to redeem 3000 YUSD, and the bottom trove has 4000 YUSD debt, it will cut it off at 2000 YUSD to keep 2000 in the bottom trove's debt. Most users will not encounter this, essentially if your truncatedYUSDAmount equals your YUSDAmount then ignore this. To calculate the other hints, on the same *HintHelpers* contract, open the "getApproxHint" function. With the output of the first function, input the following: * \_CR: Input "partialRedemptionHintAICR" from the last function call * \_numTrials: Input 0 * \_inputRandomSeed: Input some random number, like 42 Below is an example of the input: ![](/files/qwAwMmXXuxWin34PfGGn) With the output "hintAddress", save this for later to input into "RedeemCollateral" as both "upperPartialRedemptionHint" and "lowerPartialRedemptionHint". #### Putting it all together: Now we have all the inputs needed for the "RedeemCollateral" function, and we are ready to submit to the chain! Head back to the *TroveManager* address mentioned in the overview, and input the parameters as described. ![](/files/TefunXS0qJgOkbTcyFJ4) After submitting the transaction, your address will receive some collaterals which can be then sold for the equivalent of YUSDAmount on various exchanges. ### Simulating Redemptions through Tenderly #### Overview Tenderly is a platform which you can use to simulate calls to functions on the Avalanche chain, and see the exact output if you were to run it at that block. It also allows forks, which can be used to simulate multiple subsequent transactions. Head over to and create an account or log in. A free account should be sufficient for these simulations. Here we will be demonstrating one example of running a particular string of redemptions to figure out the exact fee, as well as a calculator to figure out the value of the collaterals given back. #### Set up Tenderly To make your life easier, go to the "Contracts" page on the left, and add the contracts. For each contract, select the "Avalanche C-Chain". You can verify the contracts are correct on this page: . Add the following contracts: * TroveManager: 0x000000000000614c27530d24B5f039EC15A61d8d * YUSD: 0x111111111111ed1D73f860F57b2798b683f2d325 * HintHelpers: 0x70273B508F895254553F4096575832DaB49a8B37 It should look as below to add a new contract. \ ![](/files/3lTUtfcOywwNQa0O21hc) The next step is to create a new Fork, which can be found on the menu on the left. Fork the "Avalanche C-Chain" and select "Use Latest Block". Now we are ready to simulate. Your page should look as below: ![](/files/OMVxHidD9UAxNWsVDEXV) #### Redemption simulation On your fork page, click New Simulation. First, YUSD must be approved for the TroveManager contract. Approve the TroveManagerRedemptions address (0x00000000000d9c2f60d8e82F2d1C2bed5008DD7d) for the amount which you are looking for, and submit the transaction. Change the "From" field to the address intended for the simulation. Go ahead and click "Simulate Transaction" Next, select the button "New Simulation" and choose the TroveManager contract. In the functions list, search for "redeemCollateral". Since this is a current fork of the chain, use the instructions above to gather your parameters. In the future, since the state on the chain will change due to the simulated redemption, hintHelpers will have to be queried through Tenderly. Make sure the parent is "Previous Simulation". Click "Simulate Transaction" ![](/files/TDmLh8UUabJzchvBSXI7) If all has been formatted correctly, it will go through. To parse what happened, check the Events tab, which should look something like the below. It will show the actual YUSD amount redeemed (should be equal to the collateral value), the YUSD fee actually paid, and the collateral received along with the corresponding amounts. See the below section to calculate the value of the collaterals received back from the redemption. ![](/files/VQnccPRQlahcB9yypiIk) To perform another redemption, continue with the same instructions as above for submitting a redemption, and perform new simulations, making sure to use the previous simulation as the parent. New hints will need to be calculated, and new values will need to be input. Though more accurate than other forms of estimation, state on chain can change very quickly and unpredictably, so values from Tenderly are not guaranteed to be the same as #### Calculating the Value of the Redeemed Collateral The calculation for redeemed collateral requires multiplying all the collaterals and their prices. There is a spreadsheet here: This spreadsheet calculates the estimated collateral value returned from redemptions. Create a copy of the sheet to edit it. The price is hard coded, and to update the values if there is a major discrepancy, check the "Price Feed" contract listed there and confirm it is the same as the one on this site: , and use the output from the function "fetchPrice\_v" in the "Read Contract" section to update the sheet. The value from this example is used to currently populate the sheet, so with whatever values come from any other simulation, input them into the "Amount received from Redemption" column. It should be very close to equal to the amount redeemed, and small discrepancies come from the price feeds or decimal rounding. ![](/files/4zJlNp7JcsR0Q9K4JsUH)\ In this example, we find that the estimated collateral value is approximately 1000 dollars, equal to the amount of YUSD received. #### Troubleshooting If the transaction does not go through, there could be a host of reasons: 1. Make sure you did the approval step first if it says "ERC20: transfer amount exceeds allowance" 2. If it says "out of gas", reduce the amount of YUSD you do in one transaction, and try again. The reason for this is that it sequentially redeems from the troves in the list, and each trove adds a certain amount of gas, no matter the amount of debt. So there is a functional limit of a few (3-6) troves per redemption, depending on the collateral makeup of the trove. The trove list can be seen here , so submit transactions accordingly. \ ![](/files/IpEJ693q2imdi7ro2BDE)\ For instance, at the time of writing, this is the trove list. To do a redemption of size 150,000, it might have to be split into two transactions of size (41,435 + 19,057 + 2,802 + 2,000) = 65,294 for the first one, and (150,000 - 65,294) = 84,706 for the second one. 3. If it says: "TMR:User must accept fee", then the max fee parameter must be increased. To see what the fee is on some amount of input, make the YUSDMaxFee equal to the YUSDAmount input in the Tenderly simulation.