Collateral Haircut

Plain-English meaning

In this game, Collateral Haircut is used as a vocabulary card for recognizing how market and technology concepts fit together. The short idea is: discount applied to collateral.

The term is not shown as a recommendation. It is included so players can learn the language they may see in exchange interfaces, wallet prompts, research notes, AI product pages, or on-chain analytics dashboards.

Why it belongs with DeFi Risk Limits

These terms explain risk-control mechanics that protocols may use to manage exposures and orderly liquidations.

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.