# Price Stability Mechanisms ## **Target Price** The MDS target price has two distinct primary functions on the midas platform: 1. It is used to calculate the collateral-to-debt of a vault 2. It is used to determine the value of collateral assets MDS holders have to repay at the moment of closing the vault The Target Price is denominated in USD and starts at 1, translating to a 1:1 USD soft peg. ## **veinHades Insurance Pool** The veinHades pool, built out in $HADES, serves as the insurance fund of MDS and helps safeguarding the peg to its 1:1 USD soft peg. The pool is fed via different streams: 1. Direct deposit of $HADES holders wishing to obtain veinHades to participate in governance 2. 50% of Hadeswap’s Protocol Owned Liquidity (POL) profits 3. 100% of midas’ revenue *Until 29/5/2023 11:59PM UTC, the veinHades:$HADES ratio is guaranteed to be 1:1, as after that date, we will deposit the backlogged $HADES and the APY will start running on the veinHades pool. The ratio will then be adapted depending on the $HADES being in the veinHades pool.* The insurance fund can be used as a last resort to guarantee the target price to MDS holders. It is used in case of serious emergencies, such as long term market irrationality, hacking or security breaches. --- # 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://docs.hadeswap.com/midas/price-stability-mechanisms.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.