Managing Collateral
What Is Collateral in DeFi?
Collateral is the asset you deposit to secure a loan. If the value of your collateral drops too low relative to your borrowed amount, your position may be liquidated.
With CrediX, you can:
Deposit multiple assets as collateral
Adjust collateral at any time
Monitor risk in real time
Set up alerts or automate responses
Key Metrics to Understand
Loan-to-Value (LTV)
% of your collateral's value that you can borrow
Liquidation Threshold
Point at which your position becomes vulnerable to liquidation
Health Factor
Safety score of your position; above 1.0 is safe, below 1.0 is risky
How to Manage Collateral in CrediX
1. Add More Collateral
Go to the Collateral Management section
Choose the asset you want to add
Input amount and approve transaction
Your borrowing power and health factor will update automatically
2. Withdraw Collateral (If Safe)
If your health factor is comfortably high, you can withdraw part of your collateral
Select the asset and withdrawal amount
CrediX will prevent withdrawals that would put your position at risk
3. Replace or Switch Collateral
CrediX supports multi-asset collateral — you can swap one collateral asset for another
Useful for market changes, volatility hedging, or portfolio strategy
4. Monitor Risk in Real Time
Dashboard shows:
Current collateral value
Borrow balance
Real-time health factor
Market price feed for your collateral
Enable notifications if health factor drops below your set threshold
Automation Features
Auto-Top-Up : Keep collateral levels healthy by automatically transferring from your wallet
Collateral Rebalancing: Based on volatility or new yield opportunities, CrediX can reallocate your collateral across protocols
Liquidation Protection: Trigger automatic repayment or top-up if your position becomes risky
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