# Short-selling moAssets

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Both minimum and liquidation ratios will vary based on the *short-selling target asset* and the *collateral asset*.
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Current Short-selling Collateral ratios:

| Collateral | Minimum Collateralization Ratio | Liquidation Ratio |
| :--------: | :-----------------------------: | :---------------: |
|     DAI    |               250%              |        200%       |

In Mobius Finance, users can open short positions on any moAsset. Shorting positions on Mobius involves short selling the moAsset rather than utilizing a "reverse oracle price synthetic assets" like in other synthetics markets.

When a user shorts any moAsset, the user is minting the moAsset against their collateral and short-selling it automatically in the same transaction. The system records the debt in the moAsset shorted Unit. \
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After opening a short position, the user ends up with the equivalent value of the shorted position quoted in moUSD. **In order to close their short position and redeem the collateral, users are required to pay back their debt in the moAsset that was shorted.** \
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For instance, User A shorts 1 moBTC by staking DAI. Mobius Finance platform will mint 1 moBTC and sells it automatically for moUSD. User A receives moUSD equivalent to the value of 1 moBTC. The user debt is represented as 1 moBTC and the user will need to pay back moBTC as the debt in order to get their collateral back.\
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Let's suppose that the value of moBTC drops by 10%. User A uses 90% of the moUSD to buy back 1 moBTC and pay back the debt. This allows user A to redeem its original staked asset, and have a return of 10% of the moUSD minted by the protocol at the start. The key point to understand is that user A debt is represented as moBTC, while other users who mint moUSD and buy moBTC have their debt represented as moUSD. 

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Users who take a *short position* are able to use the moUSD freely with no restrictions by Mobius Finance.
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