Redemption

Redemption is how users repay their $BTCX debt and retrieve their collateral. Additionally, the protocol supports users in partially repaying their debt and withdrawing a portion of their collateral, provided that the minimum collateral ratio is maintained. For users opting for full redemption, the protocol supports debt repayment in both $BTCX and $BTC.

Full Redemption

Using the BRC-20 asset $ORDI, suppose a user collateralizes 100 $ORDI to borrow a loan of 0.15 $BTCX. When the user wishes to repay the loan and close the Vault, they must repay the 0.15 $BTCX debt to the protocol. The protocol and the user will jointly sign to open the Vault and retrieve all collateral assets. Additionally, the protocol triggers the price oracle to close the corresponding DLC process.

Partial Redemption

Using the BRC-20 asset $ORDI, suppose a user collateralizes 100 $ORDI to borrow a loan of 0.15 $BTCX. When the user wishes to repay 50% of the loan and withdraw 50 $ORDI, they must repay the protocol 0.075 $BTCX debt. The protocol and the user will jointly sign to open the Vault and retrieve 50 $ORDI. Additionally, the protocol triggers the price oracle to update the corresponding DLC status (liquidation price).