Storage

The engine contract locks the posted collateral and assigns it to the vault of the user. The minted synthetic asset is credited to the minters wallet, unless the user chooses to lock the synthetic asset in other smart contracts pool. Because the platform is built on smart contracts, neither the platform nor any other third party can access users' funds without their permission.

However, the following rule-based features can lead to the loss or involuntary exchange of digital assets:

In a case where a step in mechanism (a partial lliquidation) is triggered on a user's collateral in a vault, the collateral is exposed to the risk of loss.

YOU tokens locked in the staking pool are exposed to the risk of partial or even complete loss of the staked YOU tokens in case the stability mechanism activation is triggered.

The holder conversion rights can trigger involuntary exchanges of digital assets, and collateral in a minter's vault can be exchanged for youves tracker tokens. These exchanges will generally be done at a different price than the prevailing market price, so the parties can expect to have some profit-and-loss impact. More details can be found in the linked detail sections about the conversion rights.