Notice: You are reading the Single-Collateral Dai version of these FAQs. For the up-to-date versions, visit this page.
- What are Collateralized Debt Positions?
- How does a CDP work?
- Who can open a CDP?
- Does a CDP incur any fees?
- What is the Collateralization Ratio?
- What risks are associated with owning a CDP?
- What are Common Practices to limit risk?
- What are some benefits of owning a CDP?
- Why would I want to open a CDP?
- Are there reasons to avoid opening a CDP?
- What kind of collateral can I stake?
- Is it possible to pay down Dai from an exchange wallet?
- How much can I over-collateralize?
- What happens to airdrops when I have locked up my Ether in a CDP?
- What happens if I want to stake my collateral with another project and also want to open a CDP with it?
- Do I have to pay back Dai if my collateral goes up in value?
- Can I use the same CDP after it has been liquidated?
- How can I verify the solvency of the CDP ecosystem?
- What is Dai?
- Why would I want to use Dai?
- Is one Dai always worth exactly one USD?
- Where does Dai come from?
- Does anyone else have a claim on my Dai tokens?
- How is the price of Dai kept stable?
- How can I make Dai?
- Where can I buy Dai?
- Where can I see the amount of collateral that is backing DAI?
- What organizations are using DAI?
- What is an Emergency Shutdown?
- What happens during an Emergency Shutdown?
- Who can Trigger an Emergency Shutdown?
- When should Emergency Shutdown be used?
- Does hitting the Debt Ceiling warrant an Emergency Shutdown?
- Will the redemption of collateral for CDPs and Dai be immediate and automatic, or a manual process?
- Why is there a time period before CDP owners can redeem collateral?
- Can MKR voters set the collateral claim processing time period to 0?
- Do Dai holders need to redeem collateral, or is it just CDP owners?
- What do I do in the case of an Emergency Shutdown if I'm a PETH holder who does not own a CDP?
- If the prices keep falling after the price feeds are frozen, doesn't this mean that people redeeming Dai and CDPs may get less than $1 of collateral?
- How quickly can an Emergency Shutdown be performed?
- What happens to MakerDAO after an Emergency Shutdown?
- Who can redeploy the system?
- What if multiple redeployments happen, who decides which one is legitimate?
- Who decides how the system should be redeployed?
- During Emergency Shutdown, will CDP owner's collateral be given away to other people?
- Is there anything preventing MKR holders from triggering an Emergency Shutdown in order to avoid MKR dilution due to poor management?
- Can I create a CDP during an Emergency Shutdown?
- What happens to inaccessible CDPs and Dai that has been lost, stuck or is dust?
- Are Stability Fees waived in the event of an Emergency Shutdown?
- Has an Emergency Shutdown ever been performed in the past?
- How was testing for Emergency Shutdown done?
- How will CDP users and Dai holders be notified of Emergency Shutdown?
- What is Governance?
- How do MKR holders manage the Dai Credit System?
- How can I vote?
- How Do I know my vote was placed?
- If the vote has already started can I still participate?
- Can I change my vote once I have placed it?
- How is the voting calculated?
- Is there more than one type of vote?
- What do people vote on?
- Does the Foundation ever vote?
- When do Governance Polls Happen?
- How Long is the Voting Period of a Governance Poll?
- When do Executive Votes Happen?
- What is Continuous Approval Voting?
- Why is the Continuous Approval Voting System necessary?
- How Long is the Voting Period of an Executive Vote?
- How does the Voting Dashboard work?
- What does setting up a voting proxy do for me?
- What is a proxy contract?
- Why do I need to set up a proxy contract?
- What am I granting permissions for, to whom, and why?
- Does it cost gas every time I vote?
- How much gas will I need, and where does it come from; the hot wallet or the cold wallet?
- How many transactions do I have to sign?
- What exactly does the link between hot and cold wallets control?
- Who controls my MKR when it is locked?
- How do I know my MKR is locked up?
- How do I retrieve my MKR?
- How does a withdrawal affect my previous votes?
- Do I need to unlock immediately after voting?
- Can I send my MKR from my cold wallet to another address while it is locked? What happens if I do that?
- What happens if I send more MKR to my cold wallet after I link it?
- Can I break the link between my hot and cold wallet?
- Can I combine more than one address holding MKR to vote?
- What is a Keeper?
- What kinds of Keepers exist within the Maker Ecosystem?
- What incentivizes Keepers?
- Are there any resources available for people wanting to become Keepers?
- What is the Bite-Keeper?
- What is the Arbitrage-Keeper?
- What is the CDP-Keeper?
- What is a Market-Maker-Keeper?
- Can I create my own Keeper bot?
- Is anyone able to become a Keeper?
- Do I need to own MKR to run a Keeper?
- Do Keepers only exist in MakerDAO?
- Are there any tutorials available for setting up Keepers?
- What is Liquidation?
- Why does Liquidation exist?
- What is the Liquidation Ratio?
- What is the Liquidation Price?
- What is the Liquidation Penalty?
- What happens during a Liquidation?
- How much collateral is left after a liquidation?
- How do I calculate my Liquidation Price?
- How do I calculate my Collateralization Ratio?
- How do I lower my Liquidation Price?
- Typical Practices to avoid getting liquidated
- How does the smart contract sell collateral?
- Can I purchase seized PETH?
- How would a flash crash affect the liquidation of CDPs?
- Where can I view live information about Liquidations?
- What is MakerDAO?
- Who Started MakerDAO and When?
- Why did the founders call it _Maker_DAO?
- What is a DAO?
- Who is the Maker Community?
- What is the Maker Foundation?
- Will the Maker Foundation exist indefinitely?
- What are the primary focuses of the Foundation?
- What is the Maker Community Foundation?
- Where does The Maker Foundation get funding from?
- Who controls the Development Fund?
- What are the plans for the Development Fund?
- Is the Development Fund-held MKR used to vote in Maker Governance?
- What is the legal structure of The Maker Foundation?
- How do I distinguish between the DAO and the team who is developing and bootstrapping MakerDAO?
- What is an Oracle?
- Why is the Oracle an attack target for malicious actors?
- How is the Oracle mechanism made secure?
- What is the Oracle Security Module?
- Who are the Price-Feed Providers?
- Are identities of people providing Oracle Price Feeds known?
- How does the Price-Feed system work?
- What is the Medianizer?
- How often does the Medianizer publish an updated reference price?
- Can MakerDAO Governance change the time of the Oracle Security Module's delay?
- What's the process for becoming a feed provider?
- Is the Oracle system resistant to Sybil attacks?
- What happens if there is a flash crash on an exchange?
- What is Risk Management?
- What is Decentralized Risk Management?
- What are Risk Teams?
- What is a Risk Construct?
- What is a Risk Model?
- Do Risk Models change?
- Are there different types of Risk teams?
- Who are the Risk Teams?
- What is the process for becoming a Risk Team?
- What is the Maker Foundation Interim Risk Team?
- How are Weightings for Risk Teams/Risk Constructs Determined?
- Who chooses which Risk Constructs should be used as a basis for decision-making?
- What is the connection between a Risk Construct and voting in new collateral?
- What is Qualitative Risk Analysis, and how should one approach it?
- What is Exposure Risk?
- What is Liquidity Risk?
- What is Volatility Risk?
- What is Correlation Risk?
- What is Price Feed Risk?
- What is Economic Capital in the Context of MakerDAO?
- What is the Stability Fee?
- When do I have to pay the Stability Fee?
- Do I have to pay the new fees on old debt?
- What is the purpose of the Stability Fee?
- Why does the Stability Fee Change?
- How is the Stability Fee calculated?
- What does the system do with the collected fees?
- Where can I see my currently accrued Stability Fee?
- How does the fee alter supply and demand?
- How do I calculate the impact of variable Stability Fees?
- How can I learn more about the Risk Teams and communicate with the Foundation about current or future changes to the system?
- Is there a limit to the range of the Stability Fee changes?
- How can CDP owners mitigate fee change risk?
- What happens if a fee change vote is rejected?
- How often will the Stability Fee change?