Notice: You are reading the Single-Collateral Dai version of these FAQs. For the up-to-date versions, visit this page.
Glossary of Terms
What are Collateralized Debt Positions?
How does a CDP work?
Who can open a CDP?
Does a CDP incur any fees?
What is the Collateralization Ratio?
What risks are associated with owning a CDP?
What are Common Practices to limit risk?
What are some benefits of owning a CDP?
Why would I want to open a CDP?
Are there reasons to avoid opening a CDP?
What kind of collateral can I stake?
Is it possible to pay down Dai from an exchange wallet?
How much can I over-collateralize?
What happens to airdrops when I have locked up my Ether in a CDP?
What happens if I want to stake my collateral with another project and also want to open a CDP with it?
Do I have to pay back Dai if my collateral goes up in value?
Can I use the same CDP after it has been liquidated?
How can I verify the solvency of the CDP ecosystem?
What is Dai?
Why would I want to use Dai?
Is one Dai always worth exactly one USD?
Where does Dai come from?
Does anyone else have a claim on my Dai tokens?
How is the price of Dai kept stable?
How can I make Dai?
Where can I buy Dai?
Where can I see the amount of collateral that is backing DAI?
What organizations are using DAI?
What is an Emergency Shutdown?
What happens during an Emergency Shutdown?
Who can Trigger an Emergency Shutdown?
When should Emergency Shutdown be used?
Does hitting the Debt Ceiling warrant an Emergency Shutdown?
Will the redemption of collateral for CDPs and Dai be immediate and automatic, or a manual process?
Why is there a time period before CDP owners can redeem collateral?
Can MKR voters set the collateral claim processing time period to 0?
Do Dai holders need to redeem collateral, or is it just CDP owners?
What do I do in the case of an Emergency Shutdown if I'm a PETH holder who does not own a CDP?
If the prices keep falling after the price feeds are frozen, doesn't this mean that people redeeming Dai and CDPs may get less than $1 of collateral?
How quickly can an Emergency Shutdown be performed?
What happens to MakerDAO after an Emergency Shutdown?
Who can redeploy the system?
What if multiple redeployments happen, who decides which one is legitimate?
Who decides how the system should be redeployed?
During Emergency Shutdown, will CDP owner's collateral be given away to other people?
Is there anything preventing MKR holders from triggering an Emergency Shutdown in order to avoid MKR dilution due to poor management?
Can I create a CDP during an Emergency Shutdown?
What happens to inaccessible CDPs and Dai that has been lost, stuck or is dust?
Are Stability Fees waived in the event of an Emergency Shutdown?
Has an Emergency Shutdown ever been performed in the past?
How was testing for Emergency Shutdown done?
How will CDP users and Dai holders be notified of Emergency Shutdown?
What is Governance?
How do MKR holders manage the Dai Credit System?
How can I vote?
How Do I know my vote was placed?
If the vote has already started can I still participate?
Can I change my vote once I have placed it?
How is the voting calculated?
Is there more than one type of vote?
What do people vote on?
Does the Foundation ever vote?
When do Governance Polls Happen?
How Long is the Voting Period of a Governance Poll?
When do Executive Votes Happen?
What is Continuous Approval Voting?
Why is the Continuous Approval Voting System necessary?
How Long is the Voting Period of an Executive Vote?
How does the Voting Dashboard work?
What does setting up a voting proxy do for me?
What is a proxy contract?
Why do I need to set up a proxy contract?
What am I granting permissions for, to whom, and why?
Does it cost gas every time I vote?
How much gas will I need, and where does it come from; the hot wallet or the cold wallet?
How many transactions do I have to sign?
What exactly does the link between hot and cold wallets control?
Who controls my MKR when it is locked?
How do I know my MKR is locked up?
How do I retrieve my MKR?
How does a withdrawal affect my previous votes?
Do I need to unlock immediately after voting?
Can I send my MKR from my cold wallet to another address while it is locked? What happens if I do that?
What happens if I send more MKR to my cold wallet after I link it?
Can I break the link between my hot and cold wallet?
Can I combine more than one address holding MKR to vote?
What is a Keeper?
What kinds of Keepers exist within the Maker Ecosystem?
What incentivizes Keepers?
Are there any resources available for people wanting to become Keepers?
What is the Bite-Keeper?
What is the Arbitrage-Keeper?
What is the CDP-Keeper?
What is a Market-Maker-Keeper?
Can I create my own Keeper bot?
Is anyone able to become a Keeper?
Do I need to own MKR to run a Keeper?
Do Keepers only exist in MakerDAO?
Are there any tutorials available for setting up Keepers?
What is Liquidation?
Why does Liquidation exist?
What is the Liquidation Ratio?
What is the Liquidation Price?
What is the Liquidation Penalty?
What happens during a Liquidation?
How much collateral is left after a liquidation?
How do I calculate my Liquidation Price?
How do I calculate my Collateralization Ratio?
How do I lower my Liquidation Price?
Typical Practices to avoid getting liquidated
How does the smart contract sell collateral?
Can I purchase seized PETH?
How would a "flash crash" affect the liquidation of CDPs?
Where can I view live information about Liquidations?
What is MakerDAO?
Who Started MakerDAO and When?
Why did the founders call it _Maker_DAO?
What is a DAO?
Who is the Maker Community?
What is the Maker Foundation?
Will the Maker Foundation exist indefinitely?
What are the primary focuses of the Foundation?
What is the Maker Community Foundation?
Where does The Maker Foundation get funding from?
Who controls the Development Fund?
What are the plans for the Development Fund?
Is the Development Fund-held MKR used to vote in Maker Governance?
What is the legal structure of The Maker Foundation?
How do I distinguish between the DAO and the team who is developing and bootstrapping MakerDAO?
What is an Oracle?
Why is the Oracle an attack target for malicious actors?
How is the Oracle mechanism made secure?
What is the Oracle Security Module?
Who are the Price-Feed Providers?
Are identities of people providing Oracle Price Feeds known?
How does the Price-Feed system work?
What is the Medianizer?
How often does the Medianizer publish an updated reference price?
Can MakerDAO Governance change the time of the Oracle Security Module's delay?
What's the process for becoming a feed provider?
Is the Oracle system resistant to Sybil attacks?
What happens if there is a flash crash on an exchange?
What is Risk Management?
What is Decentralized Risk Management?
What are Risk Teams?
What is a Risk Construct?
What is a Risk Model?
Do Risk Models change?
Are there different types of Risk teams?
Who are the Risk Teams?
What is the process for becoming a Risk Team?
What is the Maker Foundation Interim Risk Team?
How are Weightings for Risk Teams/Risk Constructs Determined?
Who chooses which Risk Constructs should be used as a basis for decision-making?
What is the connection between a Risk Construct and voting in new collateral?
What is Qualitative Risk Analysis, and how should one approach it?
What is Exposure Risk?
What is Liquidity Risk?
What is Volatility Risk?
What is Correlation Risk?
What is Price Feed Risk?
What is Economic Capital in the Context of MakerDAO?
What is the Stability Fee?
When do I have to pay the Stability Fee?
Do I have to pay the new fees on old debt?
What is the purpose of the Stability Fee?
Why does the Stability Fee Change?
How is the Stability Fee calculated?
What does the system do with the collected fees?
Where can I see my currently accrued Stability Fee?
How does the fee alter supply and demand?
How do I calculate the impact of variable Stability Fees?
How can I learn more about the Risk Teams and communicate with the Foundation about current or future changes to the system?
Is there a limit to the range of the Stability Fee changes?
How can CDP owners mitigate fee change risk?
What happens if a fee change vote is rejected?
How often will the Stability Fee change?