Terenval Crypto Glossary · Русская версия
Collateral
Definition: Collateral is an asset committed to secure an obligation such as a DeFi loan, where protocol rules can permit liquidation if required conditions are no longer met.
Collateral value is often monitored against debt using prices supplied by markets or oracles.
How this concept appears in Terenval Wallet
Terenval can hold or sign transactions involving assets later used as collateral, but the collateral rules come from the external lending protocol.
Important: Understand liquidation thresholds and what asset will be seized before opening a collateralized position.
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Related terms
Related Terenval Answers
- How to Secure a Non-Custodial Crypto Wallet
- How to Send Crypto Safely Between Wallets
- Can One Crypto Wallet Manage Multiple Blockchains?
Sources and review
Terenval product statements are first-party information.