Clearing of high-risk Asemag vaults Sample Clauses

Clearing of high-risk Asemag vaults. In order to ensure that there is always sufficient collateral in the Asemag agreement to endorse outstanding debts (i.e. the total value of outstanding debts calculated at the Target Price), any Asemag treasury that is deemed high-risk (according to the parameters specified by Asemag governance) will be cleared through an automated Asemag agreement auction process. The basis for determining the Asemag agreement is to compare the liquidation rate with the current collateral value to debt ratio of the vault. Each type of vault has its own liquidation rate, which is determined by ADAO holders voting based on the risk profile of different collateral assets.
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