Category

DeFi Risk Controls

These terms describe how lenders and protocols watch collateral, limits, and stress points.

How to recognize this theme

Words used when borrowing or setting exposure 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.

Margin Call

A margin call is a notice that a trader or borrower needs to add collateral to keep a position open.

Risk Limit

A risk limit is a cap on position size, borrowing, or other exposure a protocol is willing to accept.

Coverage Ratio

Coverage ratio compares available collateral or assets with the obligations they are meant to cover.

Interest Spread

An interest spread is the difference between two interest rates, such as lending and borrowing rates.

Borrow Cap

A borrow cap limits how much of an asset can be borrowed from a protocol to reduce concentration and liquidity risk.

Oracle Deviation Check

An oracle deviation check compares a reported price against expected ranges before a protocol relies on it.

Liquidation Band

A liquidation band describes the risk range where collateral value may be close to triggering a forced position adjustment.

Isolation Mode

Isolation mode restricts how a listed asset can be used so problems with that asset do not spread widely through a protocol.