vaults

users mint mirage assets by locking collateral into vaults.

vaults are overcollateralized debt positions containing a single form of collateral and the minted mirage asset. collateralization ratios (c-ratios) are parameterized for each collateral and mirage asset type. for example, highly correlated vaults like USDC/mUSD will have a much lower c-ratio than less correlated pairings such as APT/mUSD.

if a user falls below the target c-ratio, they risk liquidation. liquidations can be performed by anyone, and the liquidator will receive a fee for processing the liquidation. the mirage team has written open-source software that anyone can run to be a liquidator. of course, you're always free to write your own liquidator as well or modify the existing code.

each vault is a digital asset token. this means vaults can be transferred between accounts, listed on a secondary marketplace, and are easily composed across other protocols. the gives users added flexibility for managing their position and allows other participants to take over positions at a fair market value. from a portfolio management perspective, users will be able to see their vaults from within their wallet.