How is the redemption buffer calculated?

Is someone able to clarify what the redemption buffer is and how is it calculated?

I understand that it is an indicator of the risk of being redeemed but finer detail would be appreciated.


Sorry, this is way late. I don’t always keep up with forum posts.

For any given collateral ratio, the redemption buffer shows the minimum amount of ZUSD that would have to be redeemed before a line of credit at that collateral ratio would start to be redeemed against.

Roughly speaking, it is calculated by adding up the ZUSD owed, starting from the lowest collateral ratio and moving up, to determine how much ZUSD would be redeemed before the lowest collateral ratio moves up to becomes the collateral ratio in question.