Global Settlement

A global shutdown can be triggered to allow the protocol to wind down irreversibly and gracefully, letting CASH holders redeem a pro-rata share of collateral backing up to the peg value, and allowing Trove owners to withdraw their remaining collateral.

Who can trigger global shutdown?

At the moment, only the Opus team has the ability to trigger global shutdown.

What happens to my CASH?

When global shutdown is triggered, collateral that is needed to back up to the total value of circulating CASH is set aside and ring-fenced. Anyone may then burn CASH to redeem a pro-rata share of the basked of ring-fenced collateral. This lets users redeem the value of their CASH at the peg price, based on the collateral prices at the time of shutdown.

In the event that there is insufficient collateral, users may be able to redeem less than the value of their CASH at the peg price. Depending on the fluctuations in value of the collateral since the time of shutdown, users may also receive a value greater or lower than that of their CASH at peg price.

What happens to my debt?

Once global shutdown is triggered, users no longer need to repay their debt.

What happens to unaccrued interest?

Once global shutdown is triggered, all unaccrued interest is forgone, and users do not need to repay any more interest.

What happens to my collateral?

When global shutdown is triggered, a proportion of all collateral equivalent to the aggregate loan-to-value ratio is set aside for CASH holders to redeem. This acts as a system-wide redistribution of all troves' debt, with any losses being socialized across all troves. Trove owners may then withdraw all remaining collateral in their Troves.