A step-by-step guide that shows you how to manage your synthetic token position. This example is based on uGAS.
Managing your collateral is an imperative step in the process of minting uGAS.
1. If the price of ETH drops too low, or the price of uGAS rises too high, you’re at risk of getting liquidated. To prevent this, you can increase your “Collaterization Ratio” by selecting “Deposit,” adding WETH to your position, approving and confirming the transaction.
2. If you want to be more capital efficient, you can withdraw WETH up to the “Global Collaterization Ratio.” Select “Instant Withdraw” input desired amount of WETH, approve and confirm the transaction.
3. If you want to withdraw more WETH and go below the Global Collaterization Ratio, click on “Request Withdraw.”
This will initiate a 2 hour wait period to ensure that you do not withdraw below the “Minimum Collateral Ratio.”
4. Once the two hours have passed, you can click on “Withdraw” to withdraw WETH up to the Minimum Collaterization Ratio.
Please be cautious selecting this option as withdrawing up to the Minimum Collaterization Ratio exposes you to significant liquidation risk if the prices swing too much.