Collateral Cap
A collateral cap is a limit set to reduce the risk of lending by ensuring that no single asset is used too much in the borrowing process.
More terms under C
- Cold WalletA cold wallet is a type of cryptocurrency wallet that is not connected to the internet, making it a safe way to store your digital coins offline.
- Collaborative Venture Building (CVB)Collaborative venture building (CVB) is when different people or organizations team up to start a new company or work together on a product.
- CollateralCollateral is an asset that a borrower provides to a lender as a guarantee to repay a loan. If the borrower fails to repay, the lender can take the collateral…
- Collateral FactorCollateral Factor is the highest percentage of your assets that you can borrow against based on the total value of what you have provided.
- Collateral MarginThe collateral margin is the part of your investment that you need to pay for with your own money, while the rest is covered by the broker.
- Collateral TokensCollateral tokens are cryptocurrencies that you use as security when you borrow other types of crypto. They help protect the lender in case you can't pay back…
Educational definition. Protocol rules and market conventions can differ; check an asset's official documentation.