Safe Pledge

As pFIL is required to be fully backed by FIL in a 1:1 ratio, every pFIL minted must be backed by 1 FIL worth of “safe” asset owned by the Repl protocol. The safety of these assets will be compromised if the underlying assets are slashed due to miner faults. In the rare event that the miner is continuously faulting, a forced termination is a necessary risk control measure to ensure that the liquidated assets are sufficient to continue backing pFIL.

Safe Pledge is the maximum amount of pFIL that a user can mint. Is calculated at the time of pFIL minting, given how much FIL is currently locked in the miner (EligibleAsset), the current fees incurred to liquidate the miner (BaseTerminationFee), and a sensible buffer (Buffer).

Safe Pledge = EligibleAsset - BaseTerminationFee - Buffer

The EligibleAsset of a miner refers to the current balance of the miner, after paying down its outstanding pFIL and pre-commit deposits.

The BaseTerminationFee is the fee incurred to terminate all sectors in a miner. It is dynamic and is calculated at the point of termination by the Filecoin protocol itself. Therefore, the Repl Protocol continuously calculates and monitors the termination fees of all miners. Refer to the official docs for more information.

The Buffers are constants incorporated to withstand several days of continuous slashing due to sector faults.

After the Safe Pledge value for a miner is calculated and pFIL is minted, the Repl protocol will still continue monitoring the miner’s risk factor, as the EligibleAsset of a miner can change due to slashing.

As discussed in previous sections, should the EligibleAsset drop below a warning threshold, the system will issue a warning through public channels like Twitter or Slack. This gives storage providers adequate time to react and repair their sector by topping up funds. Subsequently, if no remedy action is taken and EligibleAsset drops below the termination threshold, the Repl protocol will carry out forced terminations to ensure that the liquidated assets can continue to be used to back pFIL. This also ensures enough funds are recovered to repurchase the minted pFIL.