# FAQ

**How do you calculate the collateral ratio?**

Collateral / Debt = collateral ratio.

**How do you calculate the liquidation price?**

Minimum collateral * TAD loaned = liquidation price.

**How do you calculate the Liquidation penalty?**

Currently hardcoded at 3% (Subject to Governance).

**How do you calculate the stability fee?**

**How do you calculate the amount of TAD you can loan?**

((Collateral * TAU) / minimum collateralization) = Amount of TAD$ you can loan

**How do you calculate the TAD Redemption price in dollars?**

Vault total / Vault issued = TAD Redemption price in dollars

**How do you calculate the annual redemption price?**

**Can you deposit & borrow in the same vault or do you need to open a new vault?**

You will have to open a new vault

**How do you calculate your staked balance?**

**How do i calculate the APY?**

**Where are all the liquidated vaults stored?**

There's no list because that would increase gas costs per vault opened for all users, so the only way is to check every vault number that is less than Current Number.

**How do you calculate the amount for closing your own vault?**

(cdp total / cdp issued) + loaned TAD$ = Closing vault amount.

**Auction flowchart:**

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**How does the Governance token work?**

This hasn't been implemented yet – Assume Q4 2021 / Q1 2022.

**When is someone set to ‘high risk tolerance? and can every user liquidate vaults or does the system have to do this?**

Every user can liquidate vaults, and the user decides whether or not they have ‘high risk tolerance’ and which path they want to take, the user has two options:

1 - User closes the vault immediately for borrowed TAD and 103% of the TAD’s value in collateral will be given to the user - the remainder will be returned to the original owner

2 - User starts an auction, and people can bid on the auction until it has more than 1 bid and has lasted for 7 days, after which the auction resolves as described in the flowchart.

Last modified 1yr ago