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:
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.