This paper presents much more details on the process of etching n and p type SiC using a dc saddle field source. Here is described a method for stabilizing the dc discharge by adding controlled flow of O2 to SF6 in the source chamber. This kind of etching is used to fabricate 4H-SiC p-i-n diodes with a junction periphery protection. The effect of the junction periphery protection, the source power that terminates the etching process and testing environment on the breakdown voltage are investigated. The optimised p-i-n diodes exhibit a stable reverse bias operation with a breakdown voltage of 1700 V.