The assets, the mechanics, and the details behind Magic Internet Debt. Open a chapter. Understand your next move.
MAGIC, its backing, and the usable protocol activate in one transaction. If any launch instruction fails, the transaction’s account changes roll back. Network fees and earlier preparation costs remain.
DEBT begins with 50% MAGIC and 50% USDC by value. Those weights can change as MAGIC’s price moves. Each DEBT redeems for a proportional share of both assets held in the basket, rather than a fixed dollar amount.
Imagine a $1 basket holding $0.50 of MAGIC and $0.50 of USDC. Keep those token quantities fixed, and a change in MAGIC’s price changes the basket’s value. The example below illustrates that relationship; actual issuance and redemption use the on-chain reserves.
MAGIC falls 50%$0.75
Starting value$1.00
MAGIC rises 50%$1.25
The basket’s reserves and a borrower’s MAGIC collateral are accounted for separately. Borrowing transfers existing, funded DEBT inventory. Borrower collateral is never also promised to DEBT holders for redemption. Available credit depends on collateral value, lending rules, and the inventory available.
Collected creator fees buy MAGIC, fund new basket-backed DEBT, and apply those shares toward outstanding loans. Repayment depends on realized revenue and successful execution. It is variable, with no guaranteed amount or repayment date.
MAGIC / DEBT is a separate basket release. Wallet actions require a verified, activated deployment. Earlier PAY / BACK accounts keep their original token identities and rules; a website update does not change those contracts.
No. DEBT represents a proportional share of the MAGIC and USDC in its basket. Its value can rise or fall. The $1 example in this guide is only an illustration.
Redemption burns your DEBT and returns the corresponding share of both MAGIC and USDC from the basket. Review the current amounts shown in the vault before confirming.
That is not guaranteed. Fees depend on trading activity, and repayment also requires successful fee conversion and settlement. Your loan remains your responsibility while a balance is outstanding.
Yes. If the position no longer satisfies the protocol’s collateral requirements, it can be liquidated. Watch your collateral value and outstanding DEBT, and repay or add collateral when needed.
The vault requires a verified active deployment and the conditions for that particular action. Network verification, available inventory, collateral requirements, or paused borrowing can affect availability. The vault shows the current status.