There are two collateral prices involved in a Stop-Loss trigger.
- The collateral price used for the trigger itself, shown in the Vault protection page as the Dynamic Stop Price (Figure 1), is compared to the next price for the collateral as informed by Maker OSM (Figure 2). If the next price of the collateral is below the Dynamic Stop price, the Stop-Loss protection is triggered.
- If your choice is to close your position to Dai, the collateral price used to calculate the Dai sent to your wallet when the protection is triggered is the market price of the collateral in the moment of the Stop-Loss protection. The swap from your collateral to Dai is routed through 1inch decentralized exchange.
Figure 1: Dynamic Stop price
Figure 2: Current and next OSM price for ETH