Collateral
Collateral is the asset pledged to secure a loan or position.
Category
On-Chain Credit
These words describe how collateral, leverage limits, and liquidation rules work in lending systems.
How to recognize this theme
Terms used when a loan is secured by collateral.
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.
Loan-to-Value
Loan-to-value is the ratio of borrowed amount to posted collateral.
Health Factor
Health factor measures how close an account is to liquidation in some lending systems.
Liquidation Threshold
Liquidation threshold is the collateral level at which a position can be closed automatically.