Hi folks. I'm new to MakerDAO but I'm massively impressed by its goals and ideas.
I've tried OasisDEX to trade some assets to MKR and that was going fine!
Next step is participating in the governance by creating some CDPs but I do not yet understand all of the concepts. I've watched the video tutorial on [https://dai.makerdao.com](https://dai.makerdao.com/) and read some documentation on Reddit, but I do not yet understand everything. What is the best resource for beginners to understand how everything works?
I do understand why we have Wrapped Ether \(WETH\), why you have Pooled Ether \(PETH\), and how you can use your generated DAI in a CDP to go long on Ether for instance, and make some profits. I also understand you will be charged a tiny little bit of MKR to finish CDPs. And I realize the more DAI comes into the network, the more MKR will be needed to govern it.
But there is a whole bunch of stuff for which I have no clue yet:
* If ether goes up and you have traded some DAI against it, you will make profits when you trade again later, but what if ether goes down? What are your risks? How much can you lose? Are there safety limits? What is done automatically by the system and when? And what can you do manually in such cases?
* What is the system collateralization and how is it calculated?
* What is the debt ceiling ration?
* What is the % Ration for the CDP?
* What is the Liquidation Price or how is it determined?
* What are the allowance functions such as Weth Join, Weth Mock, Peth Boom, etc?
* What does it mean to lock / free / draw / wipe / shut / give / byte?
A whole lot of questions. Basically, I was hoping there is some all\-in\-one document explaining the whole process, but maybe that doesn't exist yet? :\-\)
Thanks a lot guys.