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

Open a position

1. Deposit collateral

Before you can mint Balanced Dollars, you'll need to deposit ICX as collateral:
  1. 1.
    Click Deposit in the collateral section and choose the amount.
  2. 2.
    Check the loan section to see how much bnUSD is available to borrow.
  3. 3.
    Click Confirm and complete the transaction.
Your ICX will be automatically converted to sICX, and the deposited ICX value will grow over time to reflect the staking rewards earned by sICX. When you withdraw collateral, you’ll receive sICX.
Until voting functionality is released, all staked ICX will be delegated towards the early Balanced contributors: ICX_Station, ICONOsphere, PARROT9, Mousebelt, ICON DAO, Trustseer, and sudoblock.

2. Mint Balanced Dollars

Borrow Balanced Dollars for a one-off, 0.75% fee (subject to change by the DAO). Use bnUSD for payments, leverage, or liquidity, and 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 your loan is open, your collateral is at risk:
  • If the price of bnUSD moves too far above or below 1 USD, your position can be rebalanced to stabilise the price.
  • If the price of ICX falls, your risk increases. When your collateral is worth less than 118% of your loan (or a loan-to-value ratio of 85%), all your collateral will be liquidated.
Keep a close eye on rebalancing and your risk ratio from the position details section.

Manage your position

Use the position details section to monitor your risk and make calculated adjustments. It includes the price ICX has to reach before all your collateral is locked and your position gets liquidated.
To lower your risk ratio, repay some of your loan or deposit more collateral.
All collateral locked. To withdraw any of your collateral, keep your risk below this threshold (loan = 66.67% of collateral / collateral ratio of 150%).
Liquidated. You’ll lose all your collateral when your risk hits this level (loan = 85% of collateral value / collateral ratio below 118%).
Rebalancing. If the price of bnUSD moves above or below a ‘rebalancing threshold’ (currently 10%, but can be changed through governance), borrowers will have their position ‘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 more about rebalancing.
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

Close your position

1. Repay your loan

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.

2. Withdraw collateral

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.
When the withdrawal is complete, you'll receive sICX, which you can swap for ICX or unstake from your wallet.