# Table of Contents - [What is Butane? | Butane Documentation](#what-is-butane-butane-documentation) - [The Butane Platform | Butane Documentation](#the-butane-platform-butane-documentation) - [Getting Started | Butane Documentation](#getting-started-butane-documentation) - [Setting Up a Wallet | Butane Documentation](#setting-up-a-wallet-butane-documentation) - [Concepts | Butane Documentation](#concepts-butane-documentation) - [Acquiring CNTs | Butane Documentation](#acquiring-cnts-butane-documentation) - [Connecting Wallet | Butane Documentation](#connecting-wallet-butane-documentation) - [Butane Basics | Butane Documentation](#butane-basics-butane-documentation) - [Overview | Butane Documentation](#overview-butane-documentation) - [How to Stake Synthetics | Butane Documentation](#how-to-stake-synthetics-butane-documentation) - [Guides | Butane Documentation](#guides-butane-documentation) - [Synthetic Parameters | Butane Documentation](#synthetic-parameters-butane-documentation) - [How to Close a CDP (Repay/Liquidate) | Butane Documentation](#how-to-close-a-cdp-repay-liquidate-butane-documentation) - [How to Merge CDPs | Butane Documentation](#how-to-merge-cdps-butane-documentation) - [FAQs | Butane Documentation](#faqs-butane-documentation) - [How to Adjust a CDP | Butane Documentation](#how-to-adjust-a-cdp-butane-documentation) - [How to Create a CDP | Butane Documentation](#how-to-create-a-cdp-butane-documentation) --- # What is Butane? | Butane Documentation ![](https://docs.butane.dev/~gitbook/image?url=https%3A%2F%2F2611713366-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FsKoaKdI1o97UnvYVMfiL%252Fuploads%252FzQ6q5OxduI9RqL5HAWKO%252Fdocs-header-small.png%3Falt%3Dmedia%26token%3D9a5dfc28-90f8-4766-8ebf-facf310d1331&width=768&dpr=4&quality=100&sign=6c665881&sv=2) [](https://docs.butane.dev/#what-is-butane) What is Butane? ---------------------------------------------------------------- Butane is a decentralized synthetic assets protocol built on the Cardano blockchain using Plutus smart contracts. Users can borrow synthetics from the protocol by locking up Cardano Native Tokens (CNTs) as collateral. [](https://docs.butane.dev/#synthetic-assets) Synthetic Assets ------------------------------------------------------------------- Synthetics are tokenized derivative assets. They are derived from assets whose prices are tracked on-chain via price feed oracle mechanisms. Synthetic assets allow for exposure to their corresponding underlying asset without requiring that the asset itself be physically owned, permitting complete freedom and interoperability on the blockchain. Butane provides the flexiblity for various kinds of synthetics, including more sophisticated offerings that derive from a basket of underlying assets, and more exotic assets such as "inverse" synthetics, which track the inverse price of another asset. Butane synthetics can be staked in the system to accrue rewards. [](https://docs.butane.dev/#collateralized-debt-positions) Collateralized Debt Positions --------------------------------------------------------------------------------------------- All synthetics on Butane are backed by collateral. This is facilitated through the opening of Collateralized Debt Positions ("CDPs") - positions created when a user locks up CNT collateral and mints synthetic tokens as debt. Each synthetic on Butane has an associated set of parameters which dictate what CNTs can be used as collateral, as well as the individual borrowing powers of those assets with respect to each synthetic. CDP outstanding amounts accrue linearly overtime as interest, and CDPs with unhealthy loan-to-value ("LTV") ratios are subject to liquidation to ensure solvency. When you create a CDP with ADA, you retain staking rights to the locked ADA and can continue to earn staking rewards on Cardano's PoS mechanism. [NextThe Butane Platform](https://docs.butane.dev/introduction/the-butane-platform) Last updated 5 months ago Was this helpful? * [What is Butane?](https://docs.butane.dev/#what-is-butane) * [Synthetic Assets](https://docs.butane.dev/#synthetic-assets) * [Collateralized Debt Positions](https://docs.butane.dev/#collateralized-debt-positions) Was this helpful? --- # The Butane Platform | Butane Documentation Users interact with Butane's synthetic assets through the platform by creating and managing CDPs. The main actions on the platform are: * Creating CDPs by depositing collateral and borrowing an amount of synthetic tokens * Closing a CDP by repaying its debt and withdrawing locked collateral * Adjusting a CDP by changing the synthetic amount (minting more or burning a portion of the debt), altering the locked collateral (depositing and/or withdrawing tokens), or both * Liquidating another user's unhealthy CDP and claiming a portion of their collateral * Staking held synthetics in the system to earn savings [](https://docs.butane.dev/introduction/the-butane-platform#action-composability-engine) Action Composability Engine ------------------------------------------------------------------------------------------------------------------------- Butane introduces a novel innovation by allowing for multiple actions to be completed in a single transaction through a wholly interoperable mechanism. All of the above actions can be effected within a single transaction, on multiple CDPs, and across multiple synthetics. This maximizes efficiency and ensures that operations on Butane can be fully atomic. [PreviousWhat is Butane?](https://docs.butane.dev/) [NextGetting Started](https://docs.butane.dev/how-to-use-butane/getting-started) Last updated 9 months ago Was this helpful? Was this helpful? --- # Getting Started | Butane Documentation [Setting Up a Wallet](https://docs.butane.dev/how-to-use-butane/getting-started/setting-up-a-wallet) [Acquiring CNTs](https://docs.butane.dev/how-to-use-butane/getting-started/acquiring-cnts) [Connecting Wallet](https://docs.butane.dev/how-to-use-butane/getting-started/connecting-wallet) [PreviousThe Butane Platform](https://docs.butane.dev/introduction/the-butane-platform) [NextSetting Up a Wallet](https://docs.butane.dev/how-to-use-butane/getting-started/setting-up-a-wallet) Last updated 11 months ago Was this helpful? Was this helpful? --- # Setting Up a Wallet | Butane Documentation Before you start using the Butane dApp, make sure you have a Cardano wallet. Here is a list of few available options: **Desktop** 1. [Lace](https://www.lace.io/) 2. [Eternl](https://eternl.io/) 3. Begin 4. Flint 5. Gero **Mobile** 1. [Tokeo](https://tokeo.io/) 2. Vespr Once you have a wallet installed and backed up you need ADA to be able to submit transactions on the Cardano blockchain. You can acquire ADA in a number of ways such as CEX's and bridges. **Delegation** To enhance network security and decentralization, consider delegating your ADA to a stake pool. This not only bolsters the network but also earns you rewards. For guidance, see this example on [staking ADA using Eternl](https://medium.com/tap-in-with-taptools/cardano-staking-a-comprehensive-guide-c20fd24eecaf) . [PreviousGetting Started](https://docs.butane.dev/how-to-use-butane/getting-started) [NextAcquiring CNTs](https://docs.butane.dev/how-to-use-butane/getting-started/acquiring-cnts) Last updated 9 months ago Was this helpful? Was this helpful? --- # Concepts | Butane Documentation [](https://docs.butane.dev/how-to-use-butane/butane-basics/concepts#fees) Fees ----------------------------------------------------------------------------------- Debt accrues linearly as interest. Interest is paid whenever a CDP is closed due to repayment, liquidation, or redemption (note that adjusting a CDP is the same as closing that CDP and opening a new one, so accrued interest is paid for that action, and the new CDP starts with 0 interest). Interest is repaid either wholly in the borrowed synthetic, or partially in the Butane governance token (BTN) at a discount. The system ensures that BTN cannot be used to pay off an amount of interest that would mean a CDP owner could have leftover synthetics after fully repaying their position (and thus have created synthetics not backed by anything), and so the amount of interest payable in BTN is determined by the spread of a synthetic's savings rate and interest rate. As an example, if a position is opened for 100 MIDAS with an interest rate of 10% and a savings rate of 9%, after one year the position owner could repay their loan by burning 109 MIDAS and a 1 MIDAS equivalent in BTN (minus some discount), or by burning 110 MIDAS. In the event of a liquidation, a share of the excess value taken as profit by the liquidator is shared with the Butane treasury. The value sent to the treasury is in the same token proportions as what was claimed by the liquidator. [](https://docs.butane.dev/how-to-use-butane/butane-basics/concepts#redemptions) Redemptions ------------------------------------------------------------------------------------------------- Redemptions are a critical last resort mechanism used during exceptional market events, minimising price depeg where other stabilisation measures (i.e., interest, liquidations, staking incentives, e.t.c.) are insufficient. Redemptions are activated during such circumstances. Redemptions are not a user-facing feature, and will be executed on FIFO basis through an automated sequencer when enabled. Redemptions involve the burning of a portion of a CDP's debt and redeeming that burnt value against a proportionate value of collateral in a CDP (see **Redemption Share** in [Synthetic Parameters](https://docs.butane.dev/how-to-use-butane/butane-basics/synthetic-parameters) ). Remaining CDP debt is passed along in a continuing CDP position, and if fully redeemed, remaining collateral is sent to a collections script for the CDP owner. [](https://docs.butane.dev/how-to-use-butane/butane-basics/concepts#bad-debt) Bad Debt ------------------------------------------------------------------------------------------- Bad debt occurs when a position is no longer overcollateralized, i.e. its debt is greater than its collateral value (and so its LTV is greater than 1). In these cases, liquidations are no longer incentivised, and so to prevent the existence of unbacked synthetics in the system, the bad position's debt and collateral may be absorbed into the Butane treasury, where other users can repay portions of the debt and receive equivalent collateral value, effectively redeeming against the treasury. [PreviousOverview](https://docs.butane.dev/how-to-use-butane/butane-basics/overview) [NextSynthetic Parameters](https://docs.butane.dev/how-to-use-butane/butane-basics/synthetic-parameters) Last updated 9 months ago Was this helpful? * [Fees](https://docs.butane.dev/how-to-use-butane/butane-basics/concepts#fees) * [Redemptions](https://docs.butane.dev/how-to-use-butane/butane-basics/concepts#redemptions) * [Bad Debt](https://docs.butane.dev/how-to-use-butane/butane-basics/concepts#bad-debt) Was this helpful? --- # Acquiring CNTs | Butane Documentation #### [](https://docs.butane.dev/how-to-use-butane/getting-started/acquiring-cnts#what-are-cardano-native-tokens-cnts) **What Are Cardano Native Tokens (CNTs)?** Cardano Native Tokens (CNTs) are digital assets created on the Cardano blockchain. Unlike Ethereum's ERC-20 tokens, which rely on smart contracts for their functionality, CNTs are integrated directly into the Cardano ledger. This native integration offers several advantages: 1. **Security**: CNTs inherit the robustness and security of the Cardano blockchain, reducing risks like bugs or vulnerabilities often found in smart contracts. 2. **Scalability**: Transactions involving CNTs are more efficient and scalable compared to custom smart contract-based tokens. 3. **Low Fees**: Thanks to Cardano's low transaction costs, transferring or trading CNTs is cost-effective. CNTs can represent various assets, such as utility tokens, governance tokens, stablecoins, and tokenised physical/digital assets. * * * #### [](https://docs.butane.dev/how-to-use-butane/getting-started/acquiring-cnts#acquiring-usdbtn-butane-governance-token) **Acquiring $BTN (Butane Governance Token)** The governance token for the Butane ecosystem (**$BTN)** plays a key role in decision-making and protocol management. To trade or acquire $BTN: 1. **Use** [**SundaeSwap**](https://app.sundae.fi/exchange?given=ada.lovelace&taken=016be5325fd988fea98ad422fcfd53e5352cacfced5c106a932a35a4.42544e) : SundaeSwap is a decentralized exchange (DEX) within the Cardano ecosystem that supports $BTN. 2. **Verify the Policy ID**: Always confirm the token’s **Policy ID** before executing trades to avoid scams. The Policy ID for $BTN is: `**016be5325fd988fea98ad422fcfd53e5352cacfced5c106a932a35a4**` 3. **Steps to Trade $BTN on SundaeSwap**: * Connect a Cardano-compatible wallet (like Nami, Eternl, or Yoroi). * Select ADA as the token you’re trading from, and $BTN as the token you wish to acquire. * Confirm the Policy ID and execute the swap. * * * #### [](https://docs.butane.dev/how-to-use-butane/getting-started/acquiring-cnts#acquiring-butane-synthetic-assets) **Acquiring Butane Synthetic Assets** Butane's synthetics are tokenised representations of digital or real world assets. These synthetic assets can be traded using **DexHunter**, a DEX aggregation tool built on Cardano. 1. **What is DexHunter?** DexHunter aggregates liquidity across multiple Cardano DEXs. This allows users to split their orders and secure the best rates for trades. It’s particularly useful for trading assets that are listed across several platforms. 2. **How to Trade Butane Synthetic Assets on DexHunter**: * Visit the DexHunter platform: [https://www.dexhunter.io/](https://www.dexhunter.io/) . * Connect your wallet and ensure it’s funded with ADA for transaction fees. * Search for the synthetic asset you want to trade. * DexHunter will find and optimize the trade across all available DEXs. * Execute the trade once you’ve reviewed the details. [PreviousSetting Up a Wallet](https://docs.butane.dev/how-to-use-butane/getting-started/setting-up-a-wallet) [NextConnecting Wallet](https://docs.butane.dev/how-to-use-butane/getting-started/connecting-wallet) Last updated 10 months ago Was this helpful? Was this helpful? --- # Connecting Wallet | Butane Documentation * After setting up your wallet, return to the Butane dApp, navigate to the top right corner of the screen and click the **Connect wallet** button. ![](https://docs.butane.dev/~gitbook/image?url=https%3A%2F%2F2611713366-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FsKoaKdI1o97UnvYVMfiL%252Fuploads%252F2wQs4wVw6gf2efiy3EX8%252FScreenshot_2025-01-16_at_6.30.18_PM.png%3Falt%3Dmedia%26token%3D6ac2f795-94a6-476e-beaa-fb843dcfdec7&width=768&dpr=4&quality=100&sign=9f85a4ed&sv=2) * After you click the **Connect wallet** button, a list of supported Cardano wallets will appear. Select your preferred provider. Our recommendation is to use [Lace](https://www.lace.io/) for the best experience on desktop, and [Tokeo](https://tokeo.io/) on mobile. ![](https://docs.butane.dev/~gitbook/image?url=https%3A%2F%2F2611713366-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FsKoaKdI1o97UnvYVMfiL%252Fuploads%252FbjFT4daavs2LH7ikzyvk%252Fimage.png%3Falt%3Dmedia%26token%3D43e63bb7-575f-46c8-bbc8-b81e6e4244a9&width=768&dpr=4&quality=100&sign=d0949a55&sv=2) [PreviousAcquiring CNTs](https://docs.butane.dev/how-to-use-butane/getting-started/acquiring-cnts) [NextButane Basics](https://docs.butane.dev/how-to-use-butane/butane-basics) Last updated 9 months ago Was this helpful? Was this helpful? --- # Butane Basics | Butane Documentation [Overview](https://docs.butane.dev/how-to-use-butane/butane-basics/overview) [Concepts](https://docs.butane.dev/how-to-use-butane/butane-basics/concepts) [Synthetic Parameters](https://docs.butane.dev/how-to-use-butane/butane-basics/synthetic-parameters) [PreviousConnecting Wallet](https://docs.butane.dev/how-to-use-butane/getting-started/connecting-wallet) [NextOverview](https://docs.butane.dev/how-to-use-butane/butane-basics/overview) Was this helpful? Was this helpful? --- # Overview | Butane Documentation By now, you should be fully set up and ready to borrow synthetics from the protocol. The first screen on the app will be the **Portfolio** page, highlighting the available synthetics to borrow and collateral to deposit, as well as a breakdown of your position globally and your current holdings. Clicking "borrow" or "deposit" on a synthetic or collateral asset, respectively, will bring you to the borrow page, allowing you to interact with that asset on the platform. The **Positions** page shows all of the positions on Butane, with a default filter to your own assets. CDP management is performed here, where you can repay a position or adjust its proportions, and are able to liquidate other CDPs that are deemed unhealthy. The **Markets** page shows an overview of the current synthetic markets. Clicking on one of these rows will bring you to a detailed page for that asset, showing the current market parameters and collateral assets. This page is also where staking is performed, and so the "Staking" button for a synthetic on the portfolio page will bring you here as well. The **History** page shows all of the CDP-related actions you have taken on the platform, as well as any positions of yours that have been liquidated. You can also view the global history of all CDP actions on Butane. Many on-chain actions throughout the app will not ask for your signature immediately, instead adding that action to a transaction "cart" that lets you complete all of your pending actions in a single transaction, with a similar user experience to that of a shopping cart. Clicking the "Complete Transaction" button ![](https://docs.butane.dev/~gitbook/image?url=https%3A%2F%2F2611713366-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FsKoaKdI1o97UnvYVMfiL%252Fuploads%252FE3CmNGxOvigCJeNjZ8z6%252Fimage.png%3Falt%3Dmedia%26token%3D07114cea-c7e6-454b-88b8-9efce28aef6b&width=300&dpr=4&quality=100&sign=7cc5581b&sv=2) after adding one of these actions will take you to the **Actions** page, letting you review your transaction and complete it. This functionality can be disabled in settings, where transactions will instead immediately attempt to complete and submit (see the section on **Action Composability** in [The Butane Platform](https://docs.butane.dev/introduction/the-butane-platform) ). ![](https://docs.butane.dev/~gitbook/image?url=https%3A%2F%2F2611713366-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FsKoaKdI1o97UnvYVMfiL%252Fuploads%252FuvchycfoFoLKqTap2yWV%252Fimage.png%3Falt%3Dmedia%26token%3Dcecebcad-c2a6-44a8-911a-848f3d598b46&width=768&dpr=4&quality=100&sign=bf5c0908&sv=2) [PreviousButane Basics](https://docs.butane.dev/how-to-use-butane/butane-basics) [NextConcepts](https://docs.butane.dev/how-to-use-butane/butane-basics/concepts) Last updated 9 months ago Was this helpful? Was this helpful? --- # How to Stake Synthetics | Butane Documentation * Go to the **Markets** page * Select the row of a synthetic you want to stake ![](https://docs.butane.dev/~gitbook/image?url=https%3A%2F%2F2611713366-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FsKoaKdI1o97UnvYVMfiL%252Fuploads%252F03OiYUxcBQSSCuVJYNBw%252Fimage.png%3Falt%3Dmedia%26token%3D17925e15-170e-4f03-9972-2a0a7a23048c&width=768&dpr=4&quality=100&sign=af529a1e&sv=2) * On the synthetic's market subpage, enter an amount in the staking widget to stake * Build and submit the transaction by clicking "Stake" ![](https://docs.butane.dev/~gitbook/image?url=https%3A%2F%2F2611713366-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FsKoaKdI1o97UnvYVMfiL%252Fuploads%252FnScPZG06tva1ZGwMfDWt%252Fimage.png%3Falt%3Dmedia%26token%3Dea9ee171-8b5d-48aa-8a35-d50cd7de929c&width=768&dpr=4&quality=100&sign=a886fca5&sv=2) * Similarly, unstake your staked position and claim rewards after some time by clicking "Unstake" [PreviousHow to Merge CDPs](https://docs.butane.dev/how-to-use-butane/guides/how-to-merge-cdps) [NextFAQs](https://docs.butane.dev/how-to-use-butane/faqs) Last updated 10 months ago Was this helpful? Was this helpful? --- # Guides | Butane Documentation [How to Create a CDP](https://docs.butane.dev/how-to-use-butane/guides/how-to-create-a-cdp) [How to Close a CDP (Repay/Liquidate)](https://docs.butane.dev/how-to-use-butane/guides/how-to-close-a-cdp-repay-liquidate) [How to Adjust a CDP](https://docs.butane.dev/how-to-use-butane/guides/how-to-adjust-a-cdp) [How to Merge CDPs](https://docs.butane.dev/how-to-use-butane/guides/how-to-merge-cdps) [How to Stake Synthetics](https://docs.butane.dev/how-to-use-butane/guides/how-to-stake-synthetics) [PreviousSynthetic Parameters](https://docs.butane.dev/how-to-use-butane/butane-basics/synthetic-parameters) [NextHow to Create a CDP](https://docs.butane.dev/how-to-use-butane/guides/how-to-create-a-cdp) Was this helpful? Was this helpful? --- # Synthetic Parameters | Butane Documentation The market parameters for synthetics and their associated collateral tokens are defined through Butane's governance. These parameters can be viewed on the asset's associated market details page. Each synthetic is parameterised as follows: * **Minimum Position:** The minimum outstanding debt a CDP for this asset can ever have. * **Borrow Rate:** The annualised interest rate for this asset. The most recent 71 rates are recorded for the synthetic — CDPs opened prior to the oldest of the 71 rates coming into effect are charged at the maximum of the 10 rates for that unaccounted time period (See **Section 4.1** in the [Yellowpaper](https://files.butane.dev/yellow-paper.pdf) ). * **Savings Rate:** The APY offered for the staking of the synthetic in the protocol. Rewards accrue in a linear manner, similarly to CDP interest. * **Maximum Liquidation Return:** When liquidating a CDP, this determines the maximum return on the burnt value that you can claim from the owner as a liquidator. Any excess value is claimable by the position's owner. * **Liquidation Profit Treasury Share:** Determines how much out of the profit from a liquidation (which is capped by the **Maximum Liquidation Return**) is sent to the Butane treasury as a fee. * **BTN fee discount:** When paying for a portion of a position's interest in BTN, the % discounted from the debt amount. For example, if 1 MIDAS = 1000 BTN, there was 10 USDb owed as interest that could be paid in BTN, and the **BTN fee discount** for MIDAS was 30%, then that portion of the interest could be repaid via the burning of 7000 BTN. * **Redemption Share:** When a redemption on a CDP occurs, the percentage of the burned synthetic value that is redeemed from the position. For example, for a parameter value of 98% and a position with a debt of 100 MIDAS, burning 10 MIDAS during a redemption would mean 9.8 MIDAS worth of collateral can be redeemed from the position. Additionally, each collateral token for a synthetic is (distinctly) parameterised: * **Collateral Weight:** The borrowing power for the collateral, and the inverse of the standard "Collateral Factor" risk parameter used in various borrowing services. For a given position with xxx amount of this collateral with weight www, the value that can be borrowed against the collateral is given by xw\\frac{x}{w}wx​ and the total borrowing power of a basket of collateral assets (the "Borrowing Capacity") with values x\=(x1,…,xn)x = (x\_1, \\ldots, x\_n)x\=(x1​,…,xn​) and weights w\=(w1,…,wn)w = (w\_1, \\ldots, w\_n)w\=(w1​,…,wn​) is given by BC≔∑i\=1nxiwi\\text{BC} \\colonequals \\sum\_{i=1}^{n}\\frac{x\_i}{w\_i}BC:\=∑i\=1n​wi​xi​​. The position's proximity to liquidation (the "Health Factor") can hence be determined as HF≔BCs\\text{HF} \\colonequals \\frac{\\text{BC}}{s}HF:\=sBC​, where sss is the position's outstanding debt (this assumes the **Maximum Proportion** parameter is not upper bounding the borrowing power of collateral tokens, see below). * **Maximum Proportion**: The maximum proportion of a given debt sss that can be collateralised by the token. e.g. a value of 50% means that for a debt of 100 USDb, at a maximum, only 50 USDb can be collateralised by this token. This means that for a basket of collateral, the sum of their **Maximum Proportion**s must be over 100%, otherwise no debt can be created. This is to ensure that CDPs cannot be comprised singularly of perceived high-risk assets, and so risk is forcibly diversified. Hence, when this parameter is in play, the true health factor HF\\text{HF}HF of a position with collateral **Maximum Proportion**s m\=(m0,…,mn)m = (m\_0, \\ldots,m\_n)m\=(m0​,…,mn​) can be determined as HF≔∑imin⁡(xiwi,s⋅mi)\\text{HF} \\colonequals \\sum\_i \\min\\left(\\frac{x\_i}{w\_i}, s \\cdot m\_i\\right)HF:\=i∑​min(wi​xi​​,s⋅mi​) [PreviousConcepts](https://docs.butane.dev/how-to-use-butane/butane-basics/concepts) [NextGuides](https://docs.butane.dev/how-to-use-butane/guides) Last updated 9 months ago Was this helpful? Was this helpful? --- # How to Close a CDP (Repay/Liquidate) | Butane Documentation ### [](https://docs.butane.dev/how-to-use-butane/guides/how-to-close-a-cdp-repay-liquidate#repaying-a-position-you-own) Repaying a Position you Own * Go to the **Positions** page * Look through your positions on the "Mine" view, and find a position you want to close ![](https://docs.butane.dev/~gitbook/image?url=https%3A%2F%2F2611713366-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FsKoaKdI1o97UnvYVMfiL%252Fuploads%252FXOf5VItJD5jV1dEYKIqi%252Fimage.png%3Falt%3Dmedia%26token%3Dbe9ec19d-7947-4315-9e9f-ecb98294cebc&width=768&dpr=4&quality=100&sign=cf8909fe&sv=2) * Expand the row/card to view more details * Click the "Repay" button ![](https://docs.butane.dev/~gitbook/image?url=https%3A%2F%2F2611713366-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FsKoaKdI1o97UnvYVMfiL%252Fuploads%252FMtluq8FdRKUbpX4K8fSi%252Fimage.png%3Falt%3Dmedia%26token%3D43928e70-0cde-42af-8e39-41818b50000a&width=768&dpr=4&quality=100&sign=12df18e5&sv=2) ### [](https://docs.butane.dev/how-to-use-butane/guides/how-to-close-a-cdp-repay-liquidate#liquidating-somebody-elses-position) Liquidating Somebody Else's Position 1. Go to the **Positions** page 2. Look through positions on the "All" view, and find a position you want to liquidate 3. Expand the row/card to view more details 4. Click the "Liquidate" button A position must be unhealthy for it to be liquidated. See the section on **Collateral Weights** in[Synthetic Parameters](https://docs.butane.dev/how-to-use-butane/butane-basics/synthetic-parameters) [PreviousHow to Create a CDP](https://docs.butane.dev/how-to-use-butane/guides/how-to-create-a-cdp) [NextHow to Adjust a CDP](https://docs.butane.dev/how-to-use-butane/guides/how-to-adjust-a-cdp) Last updated 10 months ago Was this helpful? * [Repaying a Position you Own](https://docs.butane.dev/how-to-use-butane/guides/how-to-close-a-cdp-repay-liquidate#repaying-a-position-you-own) * [Liquidating Somebody Else's Position](https://docs.butane.dev/how-to-use-butane/guides/how-to-close-a-cdp-repay-liquidate#liquidating-somebody-elses-position) Was this helpful? --- # How to Merge CDPs | Butane Documentation * Go to the **Positions** page on desktop * Look through your positions on the "Mine" view, and select positions you want to merge on the table view ![](https://docs.butane.dev/~gitbook/image?url=https%3A%2F%2F2611713366-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FsKoaKdI1o97UnvYVMfiL%252Fuploads%252FgDOIejpDMFH0QiRZJjxJ%252Fimage.png%3Falt%3Dmedia%26token%3Dbb8bfd91-bb78-420c-a242-1e227da119a8&width=768&dpr=4&quality=100&sign=f620c819&sv=2) * After selecting, actions will appear at the bottom of the page * Select "Merge" to combine all selected cdps into one. Similarly, select "Close" to close all selected CDPs. ![](https://docs.butane.dev/~gitbook/image?url=https%3A%2F%2F2611713366-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FsKoaKdI1o97UnvYVMfiL%252Fuploads%252FJlA0z3Etj94Si4mENaD3%252Fimage.png%3Falt%3Dmedia%26token%3D213271c3-5d5e-4c84-bb2f-1c430d68aa33&width=768&dpr=4&quality=100&sign=6d4c3576&sv=2) [PreviousHow to Adjust a CDP](https://docs.butane.dev/how-to-use-butane/guides/how-to-adjust-a-cdp) [NextHow to Stake Synthetics](https://docs.butane.dev/how-to-use-butane/guides/how-to-stake-synthetics) Last updated 10 months ago Was this helpful? Was this helpful? --- # FAQs | Butane Documentation ### [](https://docs.butane.dev/how-to-use-butane/faqs#are-rates-fixed-or-variable) Are Rates Fixed or Variable? Both interest and savings rates are configurable parameters via governance, and both are variable throughout the course of a CDP or staked position's lifetime. Changes do not apply retroactively however, only after they are effected on-chain. ### [](https://docs.butane.dev/how-to-use-butane/faqs#why-are-only-some-wallets-officially-supported) Why are Only Some Wallets "Officially Supported"? These wallets (Lace, Eternl, Tokeo) have been tested most thoroughly, and will most likely provide the smoothest user experience on the platform. If you have another wallet you prefer, it will appear as an option on the wallet connection widget. ### [](https://docs.butane.dev/how-to-use-butane/faqs#what-does-this-redundant-collateral-warning-mean) What does this "Redundant Collateral" Warning Mean? ![](https://docs.butane.dev/~gitbook/image?url=https%3A%2F%2F2611713366-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FsKoaKdI1o97UnvYVMfiL%252Fuploads%252FjwnQU2AY9vkUshLGImNf%252Fimage.png%3Falt%3Dmedia%26token%3D922232a0-7eb2-4c2b-981c-6c3ae61789a8&width=768&dpr=4&quality=100&sign=6cff88f2&sv=2) In addition to the colllateral weight parameters which influence their borrowing powers, each CNT has a **"Maximum Proportion"** parameter which indicates the maximum percentage of the **debt** that can be collateralised by that asset (see [Synthetic Parameters](https://docs.butane.dev/how-to-use-butane/butane-basics/synthetic-parameters) ). Values deposited over the maximum amount (which can be roughly determined by multiplying MP⋅W\\text{MP} \\cdot \\text{W}MP⋅W by the current debt value in USD, where MP\\text{MP}MP and W\\text{W}W are the max proportion and weight parameters, respectively) aren't included in health factor calculations, however users can still deposit excess collateral if desired. The "rebalance" button will set the collateral amounts to be the current max values based on this calculation. [PreviousHow to Stake Synthetics](https://docs.butane.dev/how-to-use-butane/guides/how-to-stake-synthetics) Last updated 9 months ago Was this helpful? * [Are Rates Fixed or Variable?](https://docs.butane.dev/how-to-use-butane/faqs#are-rates-fixed-or-variable) * [Why are Only Some Wallets "Officially Supported"?](https://docs.butane.dev/how-to-use-butane/faqs#why-are-only-some-wallets-officially-supported) * [What does this "Redundant Collateral" Warning Mean?](https://docs.butane.dev/how-to-use-butane/faqs#what-does-this-redundant-collateral-warning-mean) Was this helpful? --- # How to Adjust a CDP | Butane Documentation * Go to the **Positions** page * Look through your positions on the "Mine" view, and find a position you want to adjust * Expand the row/card to view more details * Click the "Adjust" button, which will open up a dialog for you to manage your position ![](https://docs.butane.dev/~gitbook/image?url=https%3A%2F%2F2611713366-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FsKoaKdI1o97UnvYVMfiL%252Fuploads%252F5s9YKaYtRZM7d1ETLsLm%252Fimage.png%3Falt%3Dmedia%26token%3D77e07d7c-e27b-4c59-8db2-55d52eaf26cb&width=768&dpr=4&quality=100&sign=ff583db&sv=2) * Modify the collateral/debt as desired (see [How to Create a CDP](https://docs.butane.dev/how-to-use-butane/guides/how-to-create-a-cdp) ) * Click "Save Changes" "Adjusting" a CDP is equivalent to closing one position and opening another. Hence, any outstanding interest on the original position must be repaid upon adjusting it. [PreviousHow to Close a CDP (Repay/Liquidate)](https://docs.butane.dev/how-to-use-butane/guides/how-to-close-a-cdp-repay-liquidate) [NextHow to Merge CDPs](https://docs.butane.dev/how-to-use-butane/guides/how-to-merge-cdps) Last updated 10 months ago Was this helpful? Was this helpful? --- # How to Create a CDP | Butane Documentation Navigate to the **Borrow** page * Select the synthetic you wish to borrow on the right panel ![](https://docs.butane.dev/~gitbook/image?url=https%3A%2F%2F2611713366-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FsKoaKdI1o97UnvYVMfiL%252Fuploads%252FjSUZJi3nTtfalGZSQyS6%252Fimage.png%3Falt%3Dmedia%26token%3D0d4933e9-e8fe-42aa-9b9f-f5fa74bba2ef&width=768&dpr=4&quality=100&sign=b51840c3&sv=2) * Choose the collateral assets you want to create your position with ![](https://docs.butane.dev/~gitbook/image?url=https%3A%2F%2F2611713366-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FsKoaKdI1o97UnvYVMfiL%252Fuploads%252FpsFiKnHshCSX1ERiZ5RS%252Fimage.png%3Falt%3Dmedia%26token%3Dd5bc762c-968e-4db7-bd67-ce1cc2bac38c&width=768&dpr=4&quality=100&sign=93ae4b9f&sv=2) In the example above, one can see quick previews of the **Maximum Proportion (MP)** and **Weight (W)** parameters used for determining loan health (see [Synthetic Parameters](https://docs.butane.dev/how-to-use-butane/butane-basics/synthetic-parameters) ) * Modify collateral amounts to determine a borrowing capacity * Choose a borrow amount by either entering a specific value or using the LTV slider By default, **Safe Mode** will be enabled, enforcing a minimum health factor on newly created positions for protection against liquidations. This can be disabled in settings. ![](https://docs.butane.dev/~gitbook/image?url=https%3A%2F%2F2611713366-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FsKoaKdI1o97UnvYVMfiL%252Fuploads%252FqelVbMRqqrmcu0z5Kxm4%252Fimage.png%3Falt%3Dmedia%26token%3D78ef9562-2406-4acd-9746-8bf4dfea51a9&width=768&dpr=4&quality=100&sign=5cefe4fe&sv=2) * Review your borrow action, and click the "borrow" button ![](https://docs.butane.dev/~gitbook/image?url=https%3A%2F%2F2611713366-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FsKoaKdI1o97UnvYVMfiL%252Fuploads%252FnPAXtFlos3qSDJkvD0gJ%252Fimage.png%3Falt%3Dmedia%26token%3Dabf088b6-15cd-4244-bb85-4d79ec2e224c&width=768&dpr=4&quality=100&sign=5d077410&sv=2) By default, since Butane transactions can contain multiple actions (see the section on **Action Composability** in [The Butane Platform](https://docs.butane.dev/introduction/the-butane-platform) ), this will add a "borrow" action to your transaction cart. If you are only performing a single action and want to save yourself a few clicks, you can turn off action composability in the settings panel, which will then make the button prompt you to submit the borrowing transaction immediately. [PreviousGuides](https://docs.butane.dev/how-to-use-butane/guides) [NextHow to Close a CDP (Repay/Liquidate)](https://docs.butane.dev/how-to-use-butane/guides/how-to-close-a-cdp-repay-liquidate) Last updated 9 months ago Was this helpful? Was this helpful? ---