Collateral Haircut
A collateral haircut reduces the value assigned to pledged assets when calculating borrowing capacity or risk exposure.
Category
DeFi Collateral Controls
These concepts describe collateral mechanics in DeFi without recommending any lending strategy.
How to recognize this theme
Terms about how lending protocols manage pledged assets and borrowing limits.
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.
LTV Cap
A loan-to-value cap sets the maximum amount that can be borrowed relative to the accepted value of collateral.
Oracle Price Band
An oracle price band defines an acceptable range for external price inputs before a protocol flags or limits their use.
Liquidation Threshold
A liquidation threshold is the risk level at which a lending position may be closed or partially sold to repay debt.