> For the complete documentation index, see [llms.txt](https://docs.secured.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.secured.finance/usdfc-stablecoin/core-mechanics.md).

# Core Mechanics

How the USDFC protocol works under the hood

This section explains the mechanisms behind USDFC — how minting, liquidation, and redemption are designed to keep the system over-collateralized with FIL and the peg anchored to $1. If you want to *do* things rather than understand them, start with [Getting Started](/usdfc-stablecoin/getting-started.md).

| Page                                                                     | What it explains                                  |
| ------------------------------------------------------------------------ | ------------------------------------------------- |
| [System Overview](/usdfc-stablecoin/core-mechanics/system-overview.md)   | The components and how they fit together          |
| [The Trove System](/usdfc-stablecoin/core-mechanics/the-trove-system.md) | Collateralized debt positions and their lifecycle |
| [Mint & Borrow](/usdfc-stablecoin/core-mechanics/mint-and-borrow.md)     | Creating USDFC, fees, and the Base Rate           |
| [Stability Pool](/usdfc-stablecoin/core-mechanics/stability-pool.md)     | The pool that absorbs liquidations                |
| [Liquidation](/usdfc-stablecoin/core-mechanics/liquidation.md)           | How under-collateralized Troves are resolved      |
| [Redemption](/usdfc-stablecoin/core-mechanics/redemption.md)             | The face-value exchange that defends the peg      |
| [Recovery Mode](/usdfc-stablecoin/core-mechanics/recovery-mode.md)       | The stricter rules under system-wide stress       |
| [Price Oracle](/usdfc-stablecoin/core-mechanics/price-oracle.md)         | Where the FIL/USD price comes from                |
| [Protocol Fees](/usdfc-stablecoin/core-mechanics/protocol-fees.md)       | What is charged, when, and where it goes          |