Collateralization
Collateralization is when you use one type of asset as security to back a loan you take out in another type of asset.
More terms under C
- 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…
- Collateralized Debt ObligationA collateralized debt obligation (CDO) is a financial product made up of various loans and assets that are sold to large investment companies with significant…
- Collateralized Debt Obligation (CDO)A collateralized debt obligation (CDO) is a financial product that bundles together various loans or debts, which are then sold to investors. The value of a…
- Collateralized Debt Position (CDP)A collateralized debt position (CDP) is a way to borrow stablecoins by locking up your assets, like cryptocurrency, in a smart contract as security.
Educational definition. Protocol rules and market conventions can differ; check an asset's official documentation.