ETH & borrow ARTH against the collateral. Redeeming a loan position can be done quite easily. You can get your assets back once you repay your position in ARTH valuecoin.ARTH depending upon the collateral ratio they have set. Users can set a collateral ratio of anything up to 110% and above.ARTH a borrower will receive for the ETH they are willing to collateralize.
The CR is set by the user when a loan is opened and can be adjusted later on by adding/removing collateral or debt. The minimum CR required is 110%.110% and creates a position of 10,000$ in ARTH, they would have to at least collateralize 11,000$ worth of ETH. This position is highly prone to liquidation if the CR% falls below 110%.150% and creates a position of 10,000$ in ARTH, they would have to at least collateralize 15,000$ worth of ETH. This position is more secure than Example 1.ARTH for the collateralized position. Whereas a lower CR% means the user's position is more prone to liquidation, and they will receive more ARTH for their collateralized position.Minimum Collateralization Ratio (or MCR) is the lowest ratio of collateral that will not trigger a liquidation. This is set at 110% under normal conditions.Total Collateral Ratio or TCR is the ratio of the Dollar value of the entire system collateral at the current protocol price, to the entire system debt. ARTH.ETH) multiplied by 100e18 and divided by its entire debt.