Horizon Academy
English V3
English V3
  • Horizon Academy
  • Horizon Protocol
    • Introduction
      • Tokenomics
      • Business Model
      • Synthetic Assets - zAssets
    • Security Audit
    • Community
      • How to Initiate a HIP
      • HIPs
        • HIP-23 Revenue Sharing Model: Intent-based System Phase one
        • HIP-22: Create a zUSD - USDC pool on Pancakeswap V3
        • HIP-21: Stop Incentives to the zBNB - BNB pool on Wombat Exchange
        • HIP-20: Suspend zMATIC Market and Introduce zPOL Ahead of MATIC to POL Migration
        • HIP-19: Temporarily reduce C-Ratio to 350%
        • HIP-18: Add DOGE and SHIBA to Horizon Futures
        • HIP-17: Add DOT, AVAX, and MATIC to Horizon Futures
        • HIP-16: Add XRP, ADA, and LINK to Horizon Futures
        • HIP-15: Add SOL to Horizon Futures
        • HIP-14: Reduce Trading Fees during Horizon Futures Promotional Period
        • HIP-13: Suspend zNVDA market ahead of Stock Split and convert zNVDA to zUSD
        • HIP-12: Updated Utilization of zUSD & zBNB Liquidity
        • HIP-11: Redirect HZN from EARN Pool to PancakeSwap as ‘Bribe’ using Cakepie
        • HIP-10: Use zAssets from Community Fund staking to provide liquidity on Wombat via Yield Aggregator
        • HIP-9: Redirect HZN from EARN Pools to Wombat Exchange as ‘Bribes’
        • HIP-8: Move the zUSD-BUSD and zBNB-BNB Liquidity Pools to Wombat Exchange
        • HIP-7: Utilize the Community Fund for Additional Liquidity
        • HIP-6: Lower Target C-Ratio to 600% from 700%
        • HIP-5: List New zAssets
        • HIP-4: Use Keepers to Close Weekly Fee Periods
        • HIP-3: Suspend zTSLA ahead of Stock Split
        • HIP-2: Lower Target C-Ratio to 700%
        • HIP-1: Create incentivized zBNB/BNB pool
      • Community Grant Program
    • FAQs
  • Stake & Earn
    • Introduction
    • Staking on Horizon Protocol
      • Staking and Rewards
      • Mint, Burn, and Claim
      • Collaterialization and C-Ratio
      • Liquidation
      • Managing Risk
      • C-Ratio Strategies
      • Hedge your Portfolio
    • Interfaces
      • Account - Escrow
      • Account - Authorize
      • Account - History
    • Guides
      • How to Stake by Minting zUSD
      • Adding Liquidity for zUSD and zBNB pools
      • Add Liquidity for HZN-BNB
      • Remove LP Tokens for zUSD-BUSD Pool
      • Setting Up Chainlink Automation
  • Educational Articles
    • Glossary and Definitions
    • What are DeFi Derivatives and how are they used
    • A Brief History of Synthetic Assets and Financial Derivatives
    • DeFi Derivative Projects
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  1. Stake & Earn
  2. Staking on Horizon Protocol

Managing Risk

PreviousLiquidationNextC-Ratio Strategies

Please note that the Target C-Ratio is subject to change based on community feedback. For the most up to date Target C-Ratio,

Staking on Horizon Protocol involves some risks that stakers should be aware of. Here are key considerations and strategies to help stakers manage these risks:

HZN Price Fluctuations and your C-Ratio

C-Ratio needs to be maintained to collect rewards. There are two states that your HZN can be in:

  • 'Staked' - HZN in your wallet is staked and earning rewards, but cannot be transferred

  • 'Transferable' - HZN in your wallet is not staked and can be transferred at any time

There are two ways in which C-Ratio can change:

  • If the market price of HZN increases, the amount of HZN tokens you need to collateralize your position will reduce and your current C-Ratio will increase. Horizon Protocol will automatically release the amount of staked HZN you have to become Transferable HZN (or Escrowed HZN if you have staked your rewards) in order to always maintain a 600% ratio based on your current debt. You have the option to re-stake the extra available HZN.

  • If the market price of HZN decreases, your C-Ratio will decrease. If you have Transferable or Escrowed HZN available, Horizon Genesis will automatically migrate those balances to become Staked HZN in order to always maintain the 600% collateralization ratio.

Please note that the Target C-Ratio is subject to change based on community feedback. For the most up to date Target C-Ratio,

To maintain your C-Ratio, one can:

  • Burn some zUSD to repay part or all of your debt, increasing your C-Ratio.

  • Stake more HZN to provide additional collateral, increasing your C-Ratio. If your C-Ratio is below 600%, adding HZN to your wallet will automatically stake it (up to 600%).

Price Fluctuations in the Global Debt Portfolio

The Global Debt Portfolio represents the total value of all zAssets within Horizon Protocol.

When a user initially mints zUSD by staking HZN, this zUSD is considered debt that you owe Horizon Protocol. To unstake your HZN, you must return this debt.

The value of your minted zUSD is locked as a percentage of the Global Debt Portfolio. If the portfolio's value increases due to rising zAsset prices, your debt will also increase. On the other hand, if the portfolio's value decreases, your debt will also decrease.

Imagine the Global Debt Portfolio in Horizon Protocol is initially worth $990,000 USD, and you decide to mint $1,000 zUSD by staking your HZN. In this scenario, your debt to Horizon Protocol is $1,000 zUSD, which represents 0.1% of the total Global Debt Portfolio value.

Now, let's say the value of the Global Debt Portfolio increases due to the rising prices of zAssets within the protocol. If the portfolio's total worth grows to $1,010,000 USD, which is a 1% increase, your debt also increases. It goes from $1,000 to $1,010 zUSD. This means that you now need to burn or repay $1,010 zUSD to unstake your HZN.

Inversely, if the value of the Global Debt Portfolio decreases by 1% to $990,000 USD, your debt decreases as well. In this case, your debt drops from $1,000 to $990 zUSD. So, you would need to burn or repay only $990 zUSD to unstake your HZN.

This mechanism shows how changes in the Global Debt Portfolio's value can impact your debt and the amount you need to repay to unstake your HZN.

Missed Claims

Claims remain accessible until the commencement of the next reward claim period, which occurs every 7 days. It's essential to claim your rewards before they expire, as unclaimed rewards from the current week will be forfeited and redistributed to the following week's reward pool, benefiting all participants.

Liquidation

If your C-Ratio drops below 160%, you will receive a liquidation flag. You then have a 12-hours window to restore your C-Ratio to 600% and remove the liquidation flag; otherwise, your account may undergo liquidation. Once your C-Ratio is back at 600%, you can execute a transaction to clear the liquidation flag.

It's important to note that if you restore your C-Ratio to 600% but do not remove the liquidation flag, your account remains vulnerable to liquidation if it falls below 600% in the future.

Please note that the Target C-Ratio is subject to change based on community feedback. For the most up to date Target C-Ratio,

Please note that the Target C-Ratio is subject to change based on community feedback. For the most up to date Target C-Ratio,

In the event of an account liquidation, the liquidation flag is automatically removed without any action required from the user. For more in-depth information on how the liquidation process functions, please refer to the .

Additional guidance on staking HZN and choosing the best approach for your needs can be found in the .

Please note that the Liquidation C-Ratio and Target C-Ratio are subject to change based on community feedback. For the most up to date figures, visit the

visit the Network Stats page.
visit the Network Stats page.
visit the Network Stats page.
visit the Network Stats page.
Liquidation page
strategy section
Network Stats page