The CSL interaction process

Step 1: Creating the CSL and depositing collateral

   The CSL user first sends a transaction to GwaySBC to create the CSL, then another transaction to fund it with the amount and type of collateral used to generate AmerG. At this point, the CSL is considered collateralized.

Step 2: Generating AmerG from the collateralized CSL

The CSL user then sends a transaction to retrieve the amount of AmerG they want from the CSL, and in return the CSL accrues an equivalent amount of debt, locking them out of access to the collateral until the outstanding debt is paid back an equivalent or partial amount of AmerG.

Step 3: Paying down the debt and Responsibility Variable Annual Fee

   When the user wants to Reimburse - they can do that anytime they want, by reimbursing AmerG they will be burned and retrieved from the available total supply in the system.

   When the user wants to Pay the Accumulated Responsibility fee - The responsibility Variable Annual Fee can only be paid in AmerG. Once the user sends the requisite AmerG to the CSL, paying down the debt and Responsibility Variable Annual Fee, the CSL becomes debt free.

   When the user doesn’t pay his debt - In case if the user doesn’t take responsibility for his debt for more than 90 days the system may take action,which will decrease the total collateral amount of the asset by an equivalent missed payment days period.

Step 4: Refinance collateral

   When the user wants to Refinance - they have to pay back an equivalent or partial amount of AmerG the debt in the CSL.

   Refinance variable fee = 12% for debt balance in your account

Step 5: Deposit collateral into GwaySBC

   Deposit your asset into our smart contract and start borrowing AmerG against it. Users will have a grace period of 90 days for No need to worry about the Responsibility fees if you don’t pay them back right away.