Your position
Full breakdown
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Why Synthetix debt isn't like a normal loan
Every lending market you've probably used works the same way: you deposit collateral, you borrow a fixed amount, and your debt only grows from interest accruing on that specific loan. Synthetix inverted this for its synthetic-asset system. When you stake SNX and mint sUSD, you're not taking a private loan — you're buying a proportional share of one shared, network-wide debt pool that every staker owns together. Your debt at any moment is your percentage ownership of that pool multiplied by the pool's current total value, and the pool's total value is the sum of every synthetic asset in existence (sBTC, sETH, sUSD and the rest), marked to market in real time.
That structure means your debt moves for reasons that have nothing to do with your own trades. If other stakers are net long sBTC through their synth holdings and Bitcoin rallies hard, the whole pool's liability grows, and everyone's debt share grows with it — including stakers who hold plain sUSD and never touched a synthetic asset. This is the trade-off for SNX's high (historically 400%+) collateralization requirement: stakers absorb the trading P&L of the entire synth economy as a kind of insurance pool, and in exchange they earn a cut of trading fees plus SNX inflation rewards, but only while their own C-Ratio stays above the target.
The practical risk ladder has two thresholds. Above the target C-Ratio, you're fully eligible for staking rewards. Between the target and the lower liquidation ratio, you keep your SNX and face no penalty, but rewards are suspended until you burn debt or price recovers. Below the liquidation ratio, your position is exposed to third-party liquidation, similar to falling under an Aave health factor of 1 — except the debt side of that ratio can move against you even while you're doing nothing at all.
FAQ
What is Synthetix's C-Ratio, and why is it different from a normal loan-to-value ratio?
Your Collateralization Ratio (C-Ratio) is the value of your staked SNX divided by your share of the active debt pool, expressed as a percentage — the inverse of a normal LTV. Synthetix requires stakers to stay above a target C-Ratio (historically 400% on mainnet, lower on some later configurations) to earn staking rewards, and above a lower liquidation ratio (around 150-200%) to avoid liquidation. The key difference from Aave or Compound is that your debt isn't fixed at the amount you minted — it moves with the entire pool's performance, which is the dynamic debt-pool mechanic below.
Why does my debt change even if I never trade any synths?
When you mint sUSD against staked SNX, you don't just owe back what you minted — you become a proportional shareholder in the entire network's collective debt pool. If other Synthetix traders hold synths that go up in value (say sBTC longs during a bull run), the total value the pool owes grows, and your debt share grows with it in direct proportion to your percentage ownership of the pool — even if you personally hold zero sBTC and never made a trade. If the pool's synths lose value instead, your debt shrinks the same way. This calculator models that swing with a single 'pool debt change %' input representing the net effect of every other staker's synth exposure since you minted.
What happens if my C-Ratio falls below the liquidation ratio?
Once your C-Ratio drops below the protocol's liquidation ratio, your staked SNX becomes eligible for liquidation by anyone, similar to an undercollateralized Aave position — a liquidator burns sUSD on your behalf to reduce your debt and claims a chunk of your SNX plus a penalty. Above the liquidation ratio but below the target ratio, you keep your SNX and aren't liquidated, but you stop earning weekly staking rewards (SNX inflation and trading fees) until you restore the target ratio, either by burning sUSD debt or by SNX price rising enough on its own.
How much sUSD do I need to burn to get back to the target ratio?
Burn-to-target = currentDebt − (stakedValue ÷ targetRatio). If your staked SNX is worth $15,000 and the target ratio is 400%, the maximum debt you're allowed to carry and still earn rewards is $15,000 ÷ 4 = $3,750. Any current debt above that figure is the amount of sUSD you'd need to acquire and burn to restore full reward eligibility. This calculator computes that gap directly, along with the mirror case — how much extra sUSD you could safely mint if your ratio is currently above target.
How is this different from the site's DeFi Health Factor or Multi-Collateral Health Factor calculators?
Aave/Compound-style health factor calculators assume your debt is fixed the moment you borrow — it only grows from accruing interest, and only your own collateral's price moves your ratio. Synthetix's debt pool is a shared, socialized liability: every staker's debt balance is repriced by the collective performance of every synth in existence, not just their own trades. This calculator's 'pool debt change %' input is what makes it structurally different — it isolates the risk that comes purely from other people's positions, on top of the ordinary price risk your SNX collateral carries.