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Can I lose money in Stable Balance if the price of bitcoin drops?

The degree to which bitcoin's price can drop without impacting the fiat value of your Stable Balance funds depends on the collateral ratio of the stability provider to you, the stability seeker.

This ratio is currently locked at 1:1 (100%) for all federations.

Because the collateral contributed by the stability provider is equal to yours, your balance can withstand up to a 50% price drop in a 10-minute interval before the fiat value is ever impacted.

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