Collaterals

Assets that users lock into Unitus smart contracts as a guarantee to secure their loans.

Collateral refers to assets that a user deposits or locks into a smart contract to secure their loans, acting as a guarantee to cover potential losses in case of default or liquidation. The value of the collateral must be higher than the value of the assets borrowed, ensuring that the lender and Unitus is protected from losses. If a user’s Adequacy Ratio fell below 1, his collateral can be automatically sold at a discount to repay the lender and maintain the overall health of Unitus.

Collateralization ratios and other risk parameters vary between different assets and networks. Please check the 'Risk Parameters' for the assets of your choice.