Volatility Buffers
Volatility buffers are extra safety margins built into the system to protect users during fast market changes. When prices move quickly, these buffers help avoid sudden liquidations by giving borrowers more time to react. For instance, if the market crashes and the value of your collateral drops sharply, the buffer can delay liquidation.
It will allow you to add more collateral or repay part of your loan. This feature is important because crypto prices can sometimes change by more than 10% in a single day, and buffers help reduce the risk of losing your assets too quickly.
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