# Minting / Borrowing

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**This documentation is a work in progress!**
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Minting will decrease your [health factor](/kresko-docs/fundamentals/glossary.md). 
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The term minting comes from the ERC-20 standard referring to the process of increasing the overall supply of the token. [Kresko Assets](/kresko-docs/fundamentals/kresko-assets.md) are minted when borrowed. 

The tokens are minted to the account requesting the debt as balance in the Kresko Asset contract. It is separately recorded for the user on the protocol as debt.

After minting, users are free to transact as they wish. In order to [withdraw](/kresko-docs/fundamentals/cdps/icdp/withdraw.md) the collateral backing the minted assets the user must [repay](/kresko-docs/fundamentals/cdps/icdp/burn-repay.md) the tokens by burning, removing them from circulation.

If the value of the Kresko Asset increases or decreases, so does the [debt value](/kresko-docs/fundamentals/cdps.md#debt-value) and the [collateral value](/kresko-docs/fundamentals/cdps.md#collateral-deposit-value) required to back it. When a borrowed asset is sold on eg. the [SCDP](/kresko-docs/fundamentals/cdps/scdp.md) it translates to a [**short position**](/kresko-docs/fundamentals/glossary.md)**.**

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Each mint will emit an event with relevant information

```solidity
/**
* @notice Emitted when an account mints a Kresko asset.
* @param account The address of the account minting the Kresko asset.
* @param kreskoAsset The address of the Kresko asset.
* @param amount The amount of the KreskoAsset that was minted.
* @param receiver Receiver of the minted assets.
*/
event KreskoAssetMinted(address indexed account, address indexed kreskoAsset, uint256 amount, address receiver);
```

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## Conditions Preventing Minting

### Supply Limit

Each Kresko Asset has a configurable limit on it's total supply to allow controlled growth and to prevent malicious acts on existing liquidity.

### **Market Status**

If the liquidity for a [underlying asset](/kresko-docs/fundamentals/glossary.md) is primarily on a market that is closed the protocol will not allow minting of new assets.  This is automatic and the minting will open up when the market is open again.

### Minimum Debt Value

Protocol has a USD-denominated lower limit that forbids tiny debt positions. This prevents spamming and ensures no dust positions form which could get annoying for the users themselves and troublesome for liquidators to process.

### Safety State: Pause

In an emergency situation the [Safety Council](/kresko-docs/fundamentals/glossary.md) multisig can pause the minting of a Kresko Asset to prevent possible negative impact it would have. 


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