Stablity fee and CDP debts

Hello all,
very simple question:

Can a CDP becomes undercollaterized just because of stability fee accumulated by it?
In other words: does a stability fee become a part of CDP debts and should be maintained?


in scd – no. in mcd – yes.


Thank you for your answer, @jparklev!
I would have few more questions:

  1. How the CDP transition from scd to mcd will look like?
  2. Must be some CDP manually closed in scd and reopened in mcd or there is any “authomatic” transition path without owner’s action?
  3. Will be any stability fee debts “transferred” from open CDPs from scd to mcd too or it becomes reseted?
  4. Must be the accumulated stability fee paid at some point in “transition” process or it becomes transferred “smoothly”?

thank you!

1 Like

1 & 2. a migration contract letting you move your cdps directly from scd to mcd will be available, but, you must take the action yourself.

3 & 4. when you migrate, you will have to pay the fees owed at that time.