When you supply your assets to a token market, you can choose whether to use the supplied assets as collateral for borrowing from the market. This can affect your borrow limit and the risk value, which determines whether and when your account will be liquidated.
How to enable collateral
- On the right side of the Dashboard page, you can find in the Supply tab whether assets of a market are used as collateral for borrowing. Enable collateral by turning on the switch.
- Once collateral is enabled for a market, the borrow limit in the market will increase and the risk value will decrease.
- Click the button below and sign in your wallet for confirmation. Collateral is then enabled for the market. Please note that you are currently allowed to enable collateral for at most 11 markets. If you are prompted that the market count limit is reached, you can disable collateral for the markets without supplied assets.
How to disable collateral?
- On the right side of the Dashboard page, you can find in the Supply tab whether assets of a market are used as collateral for borrowing. Disable collateral by turning off the switch.
- Once collateral is disabled for a market, the borrow limit in the market will decrease and the risk value will increase. The action will fail if the risk value becomes greater than or equal to 100 after collateral is disabled.
- Please note that you need to pay off your debt in a market before you can disable collateral for the market.
- Note: Please be cautious as disabling collateral can lead to an increased risk value, which may then cause account liquidation.