Category

Credit Health

These words describe how lending capacity, safety buffers, and forced sales are measured.

How to recognize this theme

Terms you see when collateral supports a borrow.

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.

Collateral Factor

Collateral factor is the share of posted collateral that can count toward borrowing capacity.

Loan-to-Value

Loan-to-value compares the size of a loan with the value of the collateral securing it.

Health Factor

Health factor is a risk score that shows how close a borrowing position is to liquidation.

Liquidation Threshold

Liquidation threshold is the collateral level at which a position can be forcibly closed.