The amount of collateral the borrower has to stake has a minimum value ofwhenis chosen so that enough collateral will always cover the amount borrowed. Similarly the debt has a minimum value whensuch that there is always a minimum interest payable by a borrower
Bob borrowed 1000 DAI from the pool before 1 month of pool expiry by depositing 0.4829 ETH as collateral. When Bob repays 1008.2 DAI before maturity of the pool, he will receive his collateral back. If Bob defaults on the borrowing, his locked collateral of 0.4829 ETH will be proportionately distributed to the lenders based on the Insurance tokens lenders hold.