II.I.IV Retrieving Free Collateral

Any Minter with an excess of off-chain value (both Eligible Collateral and other forms of value that may reside in the Eligible Custody Solution) relative to their Owed M, can remove this value from the Eligible Custody Solution. They can do so by calling the Propose Retrieval method and passing the amount they wish to retrieve from custody.

Like most methods this will first call Get Present Amount. After that it will check that the on-chain Collateral Value, after subtracting the amount the Minter is trying to retrieve and any other open Retrieval IDs, is sufficient to support the Minter’s remaining balance of Owed M. Unlike Propose Mint, which is limited to one Mint ID at a time, there is not a limit to the number of outstanding Retrieval IDs. If this check passes, it will sideline this balance to be deducted from future calculations where it is relevant. Finally it outputs a Retrieval ID. The subtraction from the on-chain Collateral Value, when relevant, will remain until the Retrieval ID is closed.

In order to close the Retrieval ID and eliminate the subtraction on the Minter’s on-chain Collateral Value, the Minter must pass the Retrieval ID into an Update Collateral. In signing off on this transaction, the Validator is attesting that the Retrieval ID has been fully processed off-chain, or will not be processed at all, and that the new on-chain Collateral Value is correct.

Diagram demonstrating the effect of Retrieve on a Minter’s on-chain Collateral Value.