Term
Collateral
Assets pledged to secure a loan or position.
Type:
finance
defi
1
definition
Collateral is posted to secure borrowing or leveraged positions. If the position becomes undercollateralized, it may be liquidated to repay debt.
Related Terms
Liquidation
→Liquidation is the forced closure of a leveraged position when collateral is insufficient to cover losses, protecting the exchange or lenders.
markets
derivatives
Token
→Tokens are programmable digital assets residing on a blockchain, often representing a variety of tangible and intangible assets.
basics
blockchain
All terms and definitions may update as the Cryptionary improves.
