Key Risk Parameters

Parameter	Contract	Value	Description
MCR (Minimum Collateral Ratio)	TroveManager	110%	The minimum required ratio for all Troves. A Vault must maintain at least this ratio to avoid liquidation
CCR (Critical Collateral Ratio)	TroveManager	150%	Required ratio for new Vaults when system-wide TCR is below this threshold
Interest Rate	TroveManager	4%	Interest rate for debt, accrues over time
Liquidation Penalty	TroveManager	8%	Penalty for liquidations absorbed by the Stability Pool
Minimum Debt	BorrowerOperations	2000 $YU	Minimum debt amount required for a Trove

Parameter	Definition	Purpose
Collateralization Ratio	Value of collateral ÷ YU debt in a vault	Critical indicator of vault health and liquidation risk
Stability Fee	Annual variable rate on YU generated from Yala Vaults	Applied to YU debt
Liquidation Fee	Penalty added to outstanding YU debt upon liquidation	Based on YU debt within the vault
Minimum Collateral Ratio	Threshold for undercollateralization	Vaults below this ratio face liquidation
Liquidation Price	Price at which a vault becomes vulnerable to liquidation
Collateral Locked	Total collateral currently locked in a vault
Vault YU Debt	Total YU debt currently held within a vault
Available to Withdraw	Collateral withdrawable before risking liquidation
Available to Mint	Additional YU generatable before risking liquidation
Debt Ceiling	Maximum YU mintable across all platform vaults	Prevents risks of traditional and flash minting