Core Vaults Contracts:
The vault contracts have access to the IST mint, receive a price feed from the Flux Aggregator Contract (see below), and work in tandem to allow a user to lock a collateral asset and mint IST against that asset, subject to several parameter constraints.
Once a Vault is opened, the holder can adjust it by depositing/withdrawing collateral and minting/burning IST in any combination, so long as their resulting vault meets those core parameter constraints. Users may open multiple vaults of the same type if they wish.
Key governed parameters include:
- Minimum Initial Debt - newly opened Vaults must mint at least this minimum amount of IST
- Liquidation Margin - (asset value based on price feed / minted IST) - the ratio below which a vault is liquidated, using the locked liquidation price (see below)
- Minimum Collateralization Ratio - (asset value based on price feed / minted IST) - expressed as a positive buffer amount above the liquidation margin (e.g., a liquidation margin of 150% with a buffer of 20% = 170% for minimum collateralization ratio). This represents the lowest collateralization ratio that a user can create or adjust their vault to
- Stability Fee - fee charged for maintaining an open Vault. Expressed as an annual percentage but charged more frequently
- Liquidation Penalty - penalty charged if vault is liquidated
- Mint Limit - the maximum net IST minted by a given Vault Manager for all its associated vaults. Currently, Vault Managers are 1:1 with collateral type
The above parameters, and several more, can be adjusted by a quorum vote of the Economic Committee, as described in their charter.