6.3. Obligations of Minters

The provisioning of sufficient collateral for its Owed M is deemed to be in the responsibility of the Minter, irrespective whether such Owed M was caused by the minting of M, applied Minter Rate or Penalties. It is the Minter’s obligation to at all times provide enough capital to the SPV so that the SPV Operator can purchase sufficient Eligible Collateral.

Minter’s need to demonstrate that they provided a sufficient amount of Eligible Collateral via calling the updateCollateral() function at least once per every Update Collateral Interval. If they fail to do so a Penalty will be added to the Owed M for the time they are not in compliance with Protocol rules.

Minters need to at all times have a valid Minter-SPV Operator Agreement which meets the criteria set in place with an SPV Operator that is and remains for the time of service listed in Contact Information of Currently Approved SPV Operators.

Before submitting the first and any consecutive mint proposals, the Minter has to make an Administrative Buffer available to the SPV Operator. The payment of the Administrative Buffer can be made in Cash Equivalents. If the SPV Operator is making use of the Administrative Buffer or parts thereof in accordance with the criteria set out in the Adopted Guidance, the Minter shall replenish the Administrative Buffer so that it meets or exceeds the defined amount for the Administrative Buffer before submitting any further mint proposal.

In the interest of the stability of M and the ecosystem, a BD Minter should provide assurance (solely) to their direct institutional counterparties that it will buy back M at par value (minus any applicable fees), within the scale and time frame appropriate given its business operating conditions.