Community Safety Guidelines
At Paydax, our platform is built on the idea of fairness, security, and community participation. Everyone, whether you're borrowing, lending, or holding tokens, plays a key role in keeping the platform safe and strong. To help protect the platform and your assets, we have some important guidelines that everyone should follow. By doing so, you're helping make the system safer for everyone.
First, always make sure your Collateral Safety Score stays above 100.5%. This score tells you how safe your loan is. It's important to keep your score high because if it drops too low, your collateral might be sold automatically to cover the loan. To keep your score healthy, check it often and add more collateral if needed. This helps ensure your assets are secure and reduces the risk of losing them.
Next, participate in the Stability Pool. This pool helps protect the platform when someone's collateral value drops too low. If a borrower's assets are at risk, the Stability Pool steps in and pays off their debt. In return, if you're part of the Stability Pool, you can earn rewards, including the borrower's collateral at a discounted price and extra PDP tokens. This helps stabilize the system and gives you the chance to earn by supporting it.
It's also important to stay informed and make smart decisions. Paydax provides tools to help you monitor your collateral's value and alert you if your loan is at risk. The platform also offers guides and tips on how to manage your loans and keep them safe. The more you learn, the better you can protect your assets.
As a community-driven platform, be transparent and follow the rules. Paydax operates on decentralized governance, meaning users with PDP tokens can vote on important decisions, like changes to platform rules. By participating in these votes, you help guide the platform and make sure decisions are made fairly.
Additionally, when you borrow or lend, make sure you understand the risks involved. Borrowing involves using assets as collateral, so it's important to pick assets that you are comfortable with and that won't put your loan at risk. Lenders, who stake their PDP in the Stability Pool, help maintain the system's stability and earn rewards. By being responsible borrowers and lenders, everyone helps ensure that Paydax works smoothly for all users.
Also, use your collateral wisely. Paydax supports many types of collateral, such as Bitcoin, Ethereum, staked tokens, liquidity pool tokens, and even real-world assets like gold and real estate. Each of these assets comes with a level of risk, so always think carefully before locking them up. Some assets, like cryptocurrencies, can be very volatile, while others, like tokenized gold, may be more stable.
Security is a top priority. Paydax works with trusted security partners to audit its code and ensure everything is safe. The platform also uses accurate price data from Chainlink to make sure your collateral is always correctly valued. If you see anything suspicious, let the support team know right away.
Paydax runs on a simple fee structure. We charge small, predictable fees only when you originate loans or in case of a liquidation. These fees are used to keep the platform running smoothly, paying for security, maintenance, and rewards for users who help stabilize the system. This way, we don't rely on hidden fees which makes it easier for everyone to use the platform.
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