Collateral
Collateral is an asset pledged to back a loan, position, or other obligation.
Category
Collateral Risk
These terms describe how leverage is supported, monitored, and reduced when markets move.
How to recognize this theme
Terms that appear when loans are secured by assets.
In a daily board, this category groups terms by their shared role. Look for four cards that describe the same mechanism, risk area, or workflow rather than four words that merely sound similar.
Educational context
These entries are vocabulary notes for learning. They are not project endorsements, token recommendations, exchange rankings, or trading signals.
Leverage
Leverage increases exposure by using borrowed capital or synthetic financing.
Liquidation
Liquidation is the forced closing of a position when collateral is no longer sufficient.
Haircut
A haircut is a discount applied to collateral value to account for market risk or volatility.