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Collateral Management

This guide covers all aspects of collateral management for your nodes, including deposits, reclaims, and the reclaim finalization process.

Prerequisites
  • Collateral Contract: Learn about collateral concepts here
  • Wallet Setup: Ensure EVM wallet is associated with your hotkey here

Deposit Process​

Deposit the required collateral amount to start earning score and incentives on the subnet.

Collateral Calculation​

The required collateral amount equals 7 days of rental fees:

Collateral = 7 days × Hourly Rate × GPU Count

Step 1: Prepare Your Wallet​

  1. Associate EVM Address: Ensure your EVM wallet is associated with your Bittensor hotkey

    • Check setup guide here

  2. Check Balance: Verify your EVM wallet has sufficient TAO

    • Include gas fees for transaction costs
    • Check funding guide here

Step 2: Deposit Collateral​

  1. Access Deposit Interface:

    • Navigate to your node details page
    • Click the "Deposit" button

  2. Confirm Transaction:

    • Click "Confirm Deposit"
    • Sign the transaction in Metamask
    • Wait for blockchain confirmation
Deposit amount

The deposit amount is being calculated automatically and the field is not editable.

  1. Verify Deposit:
    • Check the "Collateral Amount" field in node details

Reclaim Process​

Important Note

Once a reclaim request has been approved, the associated node becomes permanently flagged as "reclaimed" and validators will no longer score it. Do not deposit additional collateral to reclaimed nodes as it will be ineffective.

Understanding Reclaims​

Reclaiming collateral allows you to withdraw funds from an node, but this process has important implications:

  • Permanent Action: Once approved, the node is permanently flagged as "reclaimed"
  • No Re-registration: You cannot re-register the same machine (same IP/port/GPU specs)
  • No Re-deposit: Don't deposit to the reclaimed machine.
  • Timing Requirements: Must wait at least 1 hour before finalization
  • Approval Process: Reclaims will be denied if the node is currently rented

Step 1: Submit Reclaim Request​

  1. Access Reclaim Interface:

    • Navigate to your node details page
    • Click the "Reclaim" button

  2. Confirm Reclaim Request:

    • Read and understand the permanent implications
    • Click "Submit Reclaim Request"
    • Sign the transaction in Metamask
    • Wait for blockchain processing

  3. Monitor Status:

    • Check reclaim status regularly in node details
    • Wait for approval or denial notification
    • Prepare next steps based on the outcome

Step 2: Handle Reclaim Response​

✅ Approved Reclaims​

If your reclaim is approved:

  • Status: Node becomes permanently flagged as "reclaimed"
  • Next Step: Wait until the expiration time before finalization
  • Finalization: Complete the reclaim process to withdraw funds
  • Withdrawal: Collateral returns to your EVM wallet

❌ Denied Reclaims​

If your reclaim is denied:

  • Common Reason: Node has active rentals
  • Next Steps: Wait for all rentals to complete, then resubmit

Finalize Reclaim​

Understanding Finalization​

Finalization completes the reclaim process and returns your collateral to your wallet:

  • Automatic Processing: Backend system handles finalization automatically
  • Manual Option: You can finalize manually for faster processing
  • Timing: Must wait at least 1 hour after reclaim submission
  • Result: Collateral returns to your EVM wallet

Automatic Finalization​

Current Process

Reclaim requests are currently processed automatically by the backend system for faster processing.

The system will automatically finalize your reclaim:

  • Timing: Usually within a few hours of approval
  • Funds: Collateral automatically returns to your EVM wallet
  • Monitoring: Check your wallet balance and transaction history

Manual Finalization​

For faster processing, you can finalize manually:

  1. Access Finalization:

    • Navigate to your node details page
    • Click the "Finalize Reclaim" button (if available)
    • Confirm you've waited the required 1 hour

  2. Complete Finalization:

    • Review the finalization details carefully
    • Click "Confirm Finalization"
    • Sign the transaction in Metamask
    • Wait for blockchain confirmation

  3. Verify Withdrawal:

    • Check your EVM wallet balance
    • Confirm the collateral has been returned
    • Update your transaction records

Best Practices​

💰 Collateral Management​

  • Sufficient Funding: Always maintain adequate collateral amounts
  • Timing: Plan reclaims during low-activity periods
  • Monitoring: Regularly check collateral status and node health

⚠️ Risk Management​

  • Avoid Slashing: Never remove nodes without proper reclaim process
  • Follow Procedures: Always use the official reclaim process
  • Monitor Status: Check reclaim status regularly until completion