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Open, manage, and close a position
Learn how to deposit collateral, take out a loan, optimise your risk, and close your position.

Before you can mint Balanced Dollars, you'll need to deposit collateral:
  1. 1.
    Go to the collateral section on the Home page and choose the asset you want to deposit. Each collateral type is a separate position with a different risk profile.
  2. 2.
    Click Deposit and choose the amount. The loan section will display how much bnUSD this will allow you to borrow.
  3. 3.
    Click Confirm and complete the transaction.
If you deposit ICX, it will be converted to sICX (Staked ICX), and the deposited ICX value will grow over time to reflect the staking rewards it earns. When you withdraw collateral, you’ll receive sICX.
Until voting functionality is released, all staked ICX will be delegated towards the core Balanced contributors: Lydia Labs, ICONOsphere, PARROT9, Mousebelt, ICON DAO, and sudoblock.

Borrow Balanced Dollars against your collateral for a one-off, 0.75% fee (subject to change by the DAO). You'll earn Balance Tokens (BALN) until you repay your debt.
  1. 1.
    Click Borrow in the loan section and choose the amount (minimum of 10 bnUSD).
  2. 2.
    Use the position details section to assess your risk ratio.
  3. 3.
    Click Confirm and complete the transaction.
Some or all of your collateral will be locked until you reduce the size of your loan.
While you have an open loan, your collateral is at risk.
Your position is valued in USD, so your risk will increase if the price of your collateral drops. If your collateral is ever worth less than 118% of your loan (or a loan-to-value ratio of 85%), all of your collateral will be liquidated.
Keep a close eye on your risk ratio from the position details section.

Use the position details section to monitor your risk and make calculated adjustments for each position. It includes the price your collateral has to reach before all your collateral is locked and your position gets liquidated.
If you've deposited multiple collateral types, make sure to check the status of each position regularly.
To lower your risk ratio, repay some of your loan or deposit more collateral.
All collateral locked. The maximum amount you can borrow, which varies for each collateral type (maximum loan-to-value ratio is 66.67% for ICX, 20% for BTCB). To withdraw any of your collateral, keep your risk below this threshold.
Liquidated. You’ll lose all your collateral when your risk hits this level (loan = 85% of collateral value).
Rebalancing. If the price of bnUSD moves above or below a ‘rebalancing threshold’ (currently 10%), which can't be alleviated by the Stability Fund, borrowers' positions will be ‘rebalanced’ to bring the price back to $1. If the price moves below the threshold, collateral is sold and a larger amount of debt repaid. Above the threshold, debt is increased and used to buy more collateral. A maximum of 0.05% of your debt can be rebalanced per rebalancing transaction, but many transactions are required to bring the price back. Learn how bnUSD maintains its peg.
Expected return. You'll earn the amount of BALN shown each day, unless other borrowers dilute the share. The APY uses this calculation:
(Annual BALN allocation x USD value) / Total bnUSD borrowed x100

To repay your loan, click Adjust or Repay in the loan section and reduce the amount.
The Used label indicates the maximum amount you can repay based on what's available in your wallet. If you need to buy more bnUSD to close your position, go to the Trade page.

To withdraw collateral, click Adjust or Withdraw in the collateral section, then reduce the amount. If you still have a loan, you can only withdraw up to the Locked label.
If you withdraw ICX, you can choose to unstake it (takes ~7 days) or receive sICX, which you can swap for ICX or unstake from your wallet.
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On this page
Open a position
1. Deposit collateral
2. Mint Balanced Dollars
Manage your position
Close your position
1. Repay your loan
2. Withdraw collateral