Automated Stop-Loss applies to Vaults that can be adjusted anytime, and that accrue Stability Fees over time. Setting a target liquidation price means that it would need to be reconfigured every time you adjust your vault’s collateral and debt.

To prevent this, you set your target collateralization ratio, that is independent of the current vault's debt or multiple factor, and that is not affected by the stability fees.

This introduces the Dynamic Stop price, that shows in real time what is the collateral price that will trigger the Stop-Loss for your vault, given the current multiple factor and debt value.

Figure 1: Dynamic Stop price