Sell CDS

TLDR

To sell a CDS, a user will need to deposit collateral into the selected pool. That collateral is now made available to buyers. Once a buyer pays the required premium, available collateral is locked pro-rata across all open positions. The seller of the CDS can now claim their premium. Locked collateral can not be withdrawn by the seller until the loan matures. If the loan defaults, the seller will lose any locked collateral.