Minting eUSD
Minting opens a collateralized debt position (CDP): collateral in, eUSD out, with the position's health tracked against the oracle price. You can hold one position per collateral token, so a wallet can run SPY, WETH and NVDA positions side by side.
Requirements
| Rule | Value | Purpose |
|---|---|---|
| Minimum collateral ratio (MCR) | 150%, 175% or 200% by risk group | Every mint must leave the position at or above it |
| Minimum debt | 100 eUSD | Keeps positions large enough to be worth liquidating |
| Debt ceiling | Per risk group: $2M for ETFs, ETH and big tech, $1M for high growth | Conservative caps, raised by governance as liquidity grows |
| Price freshness | At most 1 hour old | New debt only opens against a recent price |
| Mint fee | None | The only ongoing cost is the stability fee |
The full table per group is on Risk parameters.
Worked example
Deposit 10 SPY at $650 each ($6,500 of collateral). SPY is in the ETFs group: 150% MCR, 120% liquidation threshold.
| Action | Result |
|---|---|
| Maximum mint | $6,500 / 1.5 = 4,333 eUSD |
| Mint 3,000 eUSD | Collateral ratio 217%, comfortable buffer |
| SPY falls to $585 (-10%) | Ratio 195%, still healthy |
| SPY falls to $429 (-34%) | Ratio 143%, below the MCR but above the 120% liquidation threshold: no new mints, not yet liquidatable |
| Ratio reaches 120% | Position becomes liquidatable |
The same 3,000 eUSD against $6,500 of MSTR (high growth: 200% MCR, 144% threshold) also starts at 217%, but MSTR only has to fall 34% to reach its threshold, where SPY has to fall 45%.
Position management
- Mint is repeatable. Each additional mint re-checks the ratio at a fresh price. If your collateral appreciates, your capacity grows with it.
- Repay is partial or full. Repaying burns eUSD against your debt and strictly improves the ratio; remaining debt must be zero or at least the minimum debt. Anyone may repay on your behalf. Repay needs no price.
- Close position ends the position and returns all collateral in one transaction. You can burn the full debt, fees included (no price needed), or burn only the principal and let the accrued fee be paid from your collateral (needs a fresh price). The app uses the second, so you only need the eUSD you minted.
- Withdraw collateral is allowed any time the position stays at or above the MCR at a fresh price. With no debt, it needs no price.
The stability fee
Debt accrues a fixed 8% per year as simple interest on the principal you minted. There is no separate payment: the fee is added to your debt and minted to the protocol treasury when the position is touched. Example: 100 eUSD of debt becomes 108 eUSD after one year.
Minters who put their eUSD to work as liquidity on Fables earn back about 5.5% a year, for a net cost of about 2.5%. See Fees & LP rebate.
Upside stays with you
Debt is in dollars; collateral is in its own token units. If SPY rises 30% while your position is open, you repay the same number of eUSD and withdraw collateral worth 30% more. Rising collateral also raises your mint capacity.