Term

Collateral

Assets pledged to secure a loan or position.

Type:

finance

defi

definition

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

Liquidation is the forced closure of a leveraged position when collateral is insufficient to cover losses, protecting the exchange or lenders.

Tokens are programmable digital assets residing on a blockchain, often representing a variety of tangible and intangible assets.

All terms and definitions may update as the Cryptionary improves.