# Auto-Buy

Auto-Buy allows you to reduce your vault’s collateralization ratio by generating more debt which is swapped for collateral and deposited into your vault.

**Auto-Buy** allows you to reduce your vault’s collateralization ratio by generating more debt which is swapped for collateral and deposited into your vault. 

This may be beneficial in a bull market where the value of your collateral is increasing. For example, you might want to keep your collateralization ratio below a certain amount. You can generate more debt and swap it for collateral whenever that trigger is hit. This gives you increased exposure to the collateral asset.

To configure your Auto-Buy, you have to determine:

### **Trigger Ratio**

This is the collateralization ratio that, when hit, will trigger the execution of your Auto-Buy. The ratio is calculated with the next oracle price.

### **Target Ratio**

This is the collateralization ratio that is going to be achieved by executing the Auto-Buy. For Auto-Buy, the Target Ratio is always lower than the Trigger Ratio.

*Note: Auto-Buy will be eligible for execution if it can achieve the Target Ratio +/- 2%.*

### **Max Buy Price**

When you execute an Auto-Buy you generate debt to buy collateral, which is deposited into your vault. Here you are setting the maximum price that you are willing to pay for that collateral. Note that the price paid for the collateral is the current trading price on 1inch DEX, so it will very likely be different from the current and next oracle prices.

### **Max Gas Fee**

Here you select the maximum gas fee you will spend each time your Auto-Buy executes. If the gas fee exceeds your max, the Auto-Buy will remain active but will not execute until the network gas fees reduce. 

{% hint style="warning" %}
**WARNING**: This is a recursive strategy; the Auto-Buy will execute every time your trigger is hit. This means that the trigger remains in place even after the execution. If you do not wish to continue with the Auto-Buy execution, you must cancel it.
{% endhint %}

The video below shows a step-by-step tutorial for setting up an Auto-Buy strategy.

{% @arcade/embed flowId="G2JEiiK6SrTNvUIU4dpI" url="<https://app.arcade.software/share/G2JEiiK6SrTNvUIU4dpI>" %}


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