# MCD FAQ Question list

This question list is for the top 6 FAQs that we want to release at or around the time of MCD launch. Please take some time to read through them and add any you feel are needed, and to remove any questions you feel are now obsolete.

We will be opening Drafts of these FAQ reworks to the public, through the [Help Wanted section](https://forum.makerdao.com/c/comm-dev/help-wanted) in the Governance Forum.

Rules for contributing:

- Use ~~strikethrough~~ for removing obsolete questions or terms
- **Bold** new additions

Edits should:

- Add useful questions that we may have overlooked
- Remove questions that are obsolete or questionable
- Edit the wording of questions to be clearer or more in-line with MCD
- Rearrange the order of questions to be more logical

## Dai Savings Rate

- What is the Dai Savings Rate?
- Are there any range limits to the DSR, can it be negative or zero?
- Does Dai automatically earn the DSR?
**- What about CHAI, shouldn't I use that instead then?**
- Is the DSR its own smart contract?
- When a user lock their Dai in the DSR, does it pool all the locked Dai together?
- Does the DSR compound or is it only earned on the principal?
~~- What is the formula for the expected return earned through the DSR?~~
- Will there be any constraints, like minimum lockup time or withdrawal limits?
- Does Dai earned by the DSR get calculated and paid out at the time of withdrawal, or is it continuously added to the user’s balance?
**How do MKR token holders decide to change the DSR and why do they change it?**
~~-How is the DSR being used by MKR token holders as a monetary policy tool?~~
- Is there information or a model MKR holders can look at to better understand the economic impact of the DSR?
- Does the existence of DSR mean that MKR is burned at a lower rate?
- Are Stability Fees structurally higher due to the existence of the DSR?

## Emergency Shutdown

- What is an Emergency Shutdown?
- **How does an Emergency Shutdown protect all stakeholders in the MakerDAO ecosystem?**
- What happens during an Emergency Shutdown?
- Who can Initiate Emergency Shutdown?
- How is a diversified underlying collateral portfolio distributed in the event of an Emergency Shutdown?
- When should Emergency Shutdown be used?
~~- Does hitting the Debt Ceiling warrant an Emergency Shutdown?~~
- Will the redemption of collateral for Vaults and Dai be immediate and automatic, or a manual process?
- Why is there a delay period before Dai holders can redeem collateral?
- Do both Dai holders and Vault owners need to redeem collateral?
- If collateral prices keep falling after the price feeds are frozen, doesn’t that mean people redeeming Dai and closing-out Vaults may experience a haircut?
- How quickly can an Emergency Shutdown be performed?
- What happens to MakerDAO after an Emergency Shutdown?
- Who can redeploy the system?
- What if multiple redeployments happen, who decides which one is legitimate?
- Who decides how the system should be redeployed?
- During Emergency Shutdown, will CDP owner's collateral be given away to other people?
- Is there anything preventing MKR holders from triggering an Emergency Shutdown in order to avoid MKR dilution due to poor management?
~~- Can I create a Vault during an Emergency Shutdown?~~
- What happens to inaccessible Vaults and Dai?
- Are Stability Fees waived in the event of an Emergency Shutdown?
- How does Emergency Shutdown affect other Dapps?
- Has an Emergency Shutdown ever been performed in the past?
- How was testing for Emergency Shutdown done?
- How will Vault users and Dai holders be notified of Emergency Shutdown?

## Liquidation

- What is Liquidation?
- Why does Liquidation exist?
- Who triggers Liquidation?
- What is the Liquidation Ratio?
- What is the Liquidation Price?
- What is the Liquidation Penalty?
- Why is the Liquidation Penalty necessary?
- What happens during a Liquidation?
- How much collateral is left after a liquidation?
- How do I calculate my Liquidation Price?
- How do I calculate my Collateralization Ratio?
- How do I lower my Liquidation Price?
- What are typical Practices to avoid getting liquidated?
- How would a "flash crash" affect the liquidation of CDPs?
- Where can I view live information about Liquidations?
- **How do I participate in a debt auction?**

## Oracles

- What is an Oracle?
- How does the Oracle system work?
- How is the Oracle system made secure?
- What is an Oracle Security Module?
- Can MakerDAO governance change the time of the Oracle Security Module’s delay?
- What is a Medianizer?
- How often does the Medianizer publish an updated reference price?
- What is a Secure Scuttlebut Network?
- Why are Oracles an attack target for malicious actors?
- Who are the Feeds?
- Why are organizational Feeds public, while individual Feeds are pseudonymous?
- What is the process for becoming a Feed?
- Is the Oracle system resistant to Sybil attacks?
- What happens if there is a flash crash on an exchange?

## Stability Fee

- What is the Stability Fee?
- What is the purpose of the Stability Fee?
- When do I have to pay the Stability Fee?
- Do I have to pay the new fees on old debt in the case of a Stability Fee change?
- Why does the Stability Fee Change?
- How is the Stability Fee calculated?
- What does the system do with the collected fees?
- Where can I see my currently accrued Stability Fee?
- How can I calculate my potential Stability Fee?
- Where can I learn more about Risk Teams and how Stability Fees are determined?
~~- Is there a limit to how much a Stability Fee can change?~~
- How often do Stability Fees change **and by how much can they change**?

## Vault

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## Keepers

- What is a Keeper?
- What kinds of Keepers exist within the Maker Ecosystem?
- What incentivizes Keepers?
- Are there any resources available for people wanting to become Keepers?
- What is a Market-Maker-Keeper?
- What are the prerequisites for running a keeper?
- Do I need to own MKR to run a Keeper?