> For the complete documentation index, see [llms.txt](https://ascend-fi.gitbook.io/ascend_fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ascend-fi.gitbook.io/ascend_fi/protocol/deposit-collateral-and-mint-green.md).

# Deposit Collateral and Mint GREEN

Users can mint `GREEN` by opening a vault against a specific protocol supported collateral. \
A minimum of `120%` collateral ratio is required.

## Vault

You can think of vault as similar to an account. Each EOA can have only one vault for a specific collateral.

Vaults maintain two balances: the collateral balance and the `GREEN` debt balance. Users can manage these balances by adding or removing collateral or increasing or repaying debt. A vault's collateral ratio changes as these balances are adjusted.

Vaults can be closed at any time by fully paying off its debt.

## Loan Duration

Loans issued by the protocol do not have a repayment schedule; debt can be repaid at any time.

## Vault's Collateral Ratio / Individual Collateral Ratio (ICR)

The Individual Collateral Ratio (ICR) is the ratio between the US Dollar value of the collateral in a vault and its debt in `GREEN`. The collateral ratio of a vault will fluctuate as the price of the collateral changes. Users can adjust the ratio by adding or removing collateral, or increasing or repaying debt.

*For example:* Assuming the present value of `weETH` (Wrapped Etherfi ETH) is`$3,000` and you opt to deposit `10 weETH`, taking out a loan of `15,000` `GREEN` would give you a collateral ratio of `200%`.

If the `weETH` price dropped to `$2,000,` the ratio would become `133.33%`

## Minimum Collateral Ratio (MCR)

The Minimum Collateral Ratio (MCR) is the foundational debt-to-collateral ratio that, when maintained, prevents liquidation during standard operations, termed as `Normal Mode`. This parameter, integral to the protocol, is determined by governance for each specific collateral type. For instance, with an MCR set at `120%`, a vault holding a debt of `20,000` `$GREEN` requires a collateral valuation of no less than `$24,000` to safeguard against liquidation.

To avoid being liquidated in `Recovery Mode` it's advisable to maintain a ratio well beyond `150%`, ideally around `200%` to `250%`.

## Supported Collateral Types

Ascend protocol supports multiple collateral types, therefore users can open multiple vault's, one for each supported collateral.

It is important to note the following points:

1. Collateral types are segregated, therefore each collateral's Total Collateral Ratio (TCR) is calculated independently.
2. Collateral types may have different protocol parameters so at any given time using each collateral might be cheaper or more expensive than the others if `Fee Switch` has been enabled by the governance.
3. Protocol incentives might be different for each collateral type.

## Borrowing Fee

There is currently no borrowing fee. However, there is a `Fee Switch` built into the protocol. It can only be switched on by an on-chain governance mechanism requiring the community to vote with the governance token.