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Collateral Ratio Requirements Explained: How Lenders Use Them in TradFi and DeFi

Collateral Ratio Requirements Explained: How Lenders Use Them in TradFi and DeFi

Feb, 9 2026 0 Comments

Collateral ratio requirements determine how much security you need to borrow in both traditional finance and DeFi. Learn how lenders use this metric, why ratios differ between banks and crypto protocols, and how to avoid liquidation.

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