# Recovery Mode ### About Recovery Mode Recovery Mode kicks in when the Total Collateral Ratio (TCR) of the system falls below `150%`. During Recovery Mode, Troves with a collateral ratio **below 150%** can be liquidated. Moreover, the system blocks borrower transactions that would further decrease the TCR. New SLSD may only be issued by adjusting existing Troves in a way that improves their collateral ratio, or by opening a new Trove with a collateral ratio`>=150%`. In general, if an existing Trove's adjustment reduces its collateral ratio, the transaction is only executed if the resulting TCR is above `150%`. While Recovery Mode has no impact on the redemption fee, the borrowing fee is set to `0%` to maximally encourage borrowing (within the limits described above). In Recovery Mode, liquidation loss is capped at `110%` of a Trove's collateral. Any remainder, i.e. the collateral above `110%` (and below the TCR), can be reclaimed by the liquidated borrower using the standard web interface. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://psy-stablecoin.gitbook.io/psy/stablecoin/recovery-mode.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.