Shutdown Mode

Shutdown mode ensures that all xUSD can be returned for underlying collateral. When shutdown mode is triggered, vault owners cannot mint more xUSD.

Vault Owners

Vault owners have 7 days after shutdown to return xUSD and close their vaults. After this, their vault may be redeemed against.

xUSD Holders

7 days after shutdown mode, any xUSD holder can redeem xUSD 1$ of underlying colateral at a 1% discount on the collateral price. The protocol deducts 0.5% of the discounted collateral Liquidations would also still be available within the 7 days that leads up to the redemption feature being unlocked

When all vaults are closed, and there is no more outstanding xUSD, the vault contract will cease to function.

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