[Lending FAQ] COLLATERAL

  • ABOUT COLLATERAL

SUPPLY MODAL


Q1: What is Collateral Factor?

Collateral Factor is the maximum limited amount users can borrow from the asset they have supplied.
For example, the Collateral Factor of ETH is 75%. If the user supplied 1 ETH worth $2500 and enabled the supplied ETH as collateral, the borrow limit of the user would be $1875 (1ETH * 75%) worth of borrowing asset on C.R.E.A.M.

Q2: What is Used as Collateral ?

This is the state if the user uses the asset as collateral.

  • Yes means ‘This asset is used as collateral’*
  • No means ‘This asset is not used as collateral.’*

Q3: What is Collateral Balance?

Collateral Balance represents the amount of the asset which is enabled as collateral.
Collateral Balance will be equal or less than Supply Balance. For some specific assets having a Collateral Cap limit, the user may not have their total supplied asset as collateral, but part of them will be accepted as collateral.

  • About Collateral Cap
    The Collateral Cap feature specifies a market’s maximum effective collateral, measured in units of the market’s token. If a market’s collateral cap is set to 1M, it means only 1M of the token can be used as collateral. Details :point_right: here.

Q4: What is Collateral Remain and how does the Register button work?

Collateral Remain is showing the buffer between Collateral Cap and the current Total Collateral Balance. If a collateral buffer remains on the market and the user’s collateral balance is lower than his supply balance, more collateral may be registered. The user can click on the Register button to send the transaction for enabling more collateral and the protocol will allow as much collateral as possible.

  • Total Collateral Balance: The total sum of the Collateral Balance for each user.
  • Register action is equal to enabling collateral again.
1 Like

Hey there
I have been borrowing dollars on cream finance by supplying etherium as Collateral. I come back today having been on a short 3 day holiday and cream has decided to start using my etherium collateral without my consent to start paying off prematurely the dollars that I have borrowed. The whole point of using this was to start building up my large cap portfolio but at the same time being in my small cap alts also. Can someone please get back to me as to why Cream is doing this? Thanks