Collateral Asset
Last updated
Last updated
A Collateral Asset is a digital asset that an Asset Manager deposits into a Margin Account to secure a loan in the Arkis ecosystem. It serves as a financial guarantee that ensures lenders and liquidity providers are protected in case of a borrower's default or excessive risk exposure.
Deposit: The Asset Manager deposits an approved (whitelisted) token—like ETH, LSTs, Pendle PTs, or LP tokens—into a Margin Account.
Risk Assessment: The value of the asset is monitored in real time by the , which calculates the and ratio.
Leverage Enablement: Based on the collateral's quality and risk profile, the Asset Manager can borrow funds or open leveraged positions within approved limits.
Usage: The Asset Manager can trade, yield farm, or hedge with the borrowed assets—only within whitelisted protocols—while the collateral remains locked in the Margin Account.
Liquidation Safety Net: If the Risk Factor crosses a critical threshold, Arkis will liquidate part or all of the collateral automatically to repay lenders and protect the platform from losses.
Must be part of the
Subject to LTV constraints (e.g., 50% for volatile tokens, up to 80–90% for stable collateral)
Can be yield-bearing, such as Pendle PT tokens or Curve LPs
Must have sufficient onchain liquidity to allow liquidation with minimal slippage
An Asset Manager deposits $1,000 worth of EtherFi (LST) into a Margin Account. Based on the token’s risk profile, Arkis allows a max LTV of 60%. The Asset Manager can now borrow up to $600 worth of USDC and use it to open positions or farm on whitelisted DeFi protocols—all while EtherFi acts as collateral.