Maintaining a relatively low C-ratio allows a user to mint more kAsset tokens with less collateral. However, the risk is that a CDP can be margin called when it drops below the minimum required C-ratio. If the owner does not quickly take action and deposit more collateral at this time, or burn kAssets to reduce leverage of the position, other users can purchase their CDP’s collateral at discount. The protocol will try to increase the CDP’s C-ratio by burning kAssets recovered from collateral liquidation. If a is the amount of kAssets paid (max. The amount minted by CDP) and b is kAssets’ discount rate of liquidation auction, a buyer will expect to get: