Could you please explain, what happens when the collateral price goes down(but doesn't hit the liquidation ratio) and the user neither doesn't deposit extra collateral nor doesn't possess enough dai in his/her account to get charged in order to recover the initial ratio? Thanks!!
1 Answer
I got an answer like this on another platform. The system charges from the vault the stability fees every second until it eventually hits the liquidation ratio, but the process is very slow, so practically, the vault will never hit the liquidation ratio when there aren't serious price drops.