How to add collateral
You can add more collateral to your loan to prevent liquidation.
Here’s how you can do that -
- From the active loans section, select the loan to which you want to add collateral to.
- Select Add Collateral.
- Enter the amount you want to add and hit the Add to Collateral button.
Liquidation is a process where your collateral will be sold in the open market if your debt-to-collateral ratio exceeds the adequate value.
Borrowers will get a notification if their loan position is nearing liquidation. Thus, borrowers must maintain their debt-to-collateral ratio and deposit more collateral, if required to prevent liquidation.