Collateral Tokens
Collateral 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 the loan.
More terms under C
- Collateral CapA 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.
- 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.
- CollateralizationCollateralization is when you use one type of asset as security to back a loan you take out in another type of asset.
- 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…
Educational definition. Protocol rules and market conventions can differ; check an asset's official documentation.