Emergency Shutdown Procedure

1. Single Asset Liquidation

If a particular collateral asset has exceeded the acceptable risk threshold, liquidation of this asset can be triggered with the following process

  • stop accepting this asset as collateral
  • increase liquidation ratio to gradually close positions
  • forced liquidation of residual positions after a certain time limit

2. Global Liquidation

For whatever reason the system is adversely affected and is on a seemingly irreversible worsening trend, the global shutdown can be triggered with the following process

  • snapshot of latest oracle pricing
  • stop accepting any assets as collateral, adjusting positions
  • liquidate system debt and profit
  • aUSD holder can proportionally redeem collaterals

Original: Home · AcalaNetwork/Acala Wiki · GitHub

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