Glossary

Coverage Ratio

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

Collateral versus obligation

Plain-English meaning

Coverage Ratio is used here to describe collateral versus obligation. In the daily board, the word is grouped by the role it performs rather than by spelling or market popularity.

You may encounter it in a product interface, technical document, risk report, policy paper, or market dashboard. The term is included for recognition and comparison, not as a product recommendation.

Why it belongs with DeFi Risk Controls

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

When solving the puzzle, compare the job this term performs with nearby cards. A correct group usually shares a function, risk type, workflow, or market structure rather than simply sharing similar wording.

Where you might see it

You might encounter this term while reading educational explainers, product documentation, risk disclosures, market dashboards, or beginner guides. Always separate vocabulary learning from financial decision-making.

Educational vocabulary only. This definition does not provide investment, tax, legal, product, or trading advice.