Collateral

finance

defi

Assets pledged to secure a crypto loan, margin position, or smart contract obligation until repayment.

definition

Collateral is posted to secure borrowing or leveraged positions. If the position becomes undercollateralized, it may be liquidated to repay debt.

Conceptual links

3 linked

Explore connected entries beyond the alphabetical index.

DeFi uses smart contracts to provide permissionless financial services such as trading, lending, borrowing, and asset issuance.

The forced closure of a leveraged position when collateral falls below required margin.

A digital asset issued on an existing blockchain, often representing value, rights, access, or unique ownership.

All terms and definitions may update as the Cryptionary improves.