> ## Documentation Index
> Fetch the complete documentation index at: https://docs-staging.centuari.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Collateral Types

> Understanding crypto and RWA collateral options

## Overview

Centuari accepts both crypto assets and tokenized real-world assets (RWA) as collateral. Each has different risk parameters.

## Crypto Collateral

### ETH (Ether)

| Parameter             | Value |
| --------------------- | ----- |
| Max LTV               | 80%   |
| Liquidation Threshold | 85%   |
| Liquidation Penalty   | 5%    |

**Best for**: Long-term ETH holders who want liquidity without selling

### wBTC (Wrapped Bitcoin)

| Parameter             | Value |
| --------------------- | ----- |
| Max LTV               | 75%   |
| Liquidation Threshold | 80%   |
| Liquidation Penalty   | 5%    |

**Best for**: BTC holders seeking stablecoin liquidity

### Stablecoins (USDC, USDT)

| Parameter             | Value |
| --------------------- | ----- |
| Max LTV               | 90%   |
| Liquidation Threshold | 95%   |
| Liquidation Penalty   | 3%    |

**Best for**: Stablecoin holders wanting leverage or cross-currency borrowing

### stETH (Lido Staked ETH)

| Parameter             | Value |
| --------------------- | ----- |
| Max LTV               | 75%   |
| Liquidation Threshold | 80%   |
| Liquidation Penalty   | 5%    |

**Best for**: Stakers who want to keep earning staking rewards while borrowing

## RWA Collateral

### Tokenized Equities

| Asset Type | Max LTV | Liquidation | Example        |
| ---------- | ------- | ----------- | -------------- |
| Large Cap  | 65%     | 75%         | AAPL.t, MSFT.t |
| ETFs       | 70%     | 78%         | SPY.t, QQQ.t   |

**Best for**: Stock holders who want DeFi liquidity without selling positions

### Tokenized Treasuries

| Asset Type    | Max LTV | Liquidation | Example    |
| ------------- | ------- | ----------- | ---------- |
| T-Bills       | 85%     | 92%         | USDY, OUSG |
| Treasury ETFs | 78%     | 85%         | TLT.t      |

**Best for**: Conservative investors seeking highest capital efficiency

### Tokenized Gold

| Asset Type    | Max LTV | Liquidation | Example    |
| ------------- | ------- | ----------- | ---------- |
| Physical Gold | 70%     | 78%         | PAXG, XAUT |

**Best for**: Gold holders wanting USD liquidity while maintaining gold exposure

## Collateral Comparison

| Collateral | Max LTV | Volatility | Liquidity | Best Use Case          |
| ---------- | ------- | ---------- | --------- | ---------------------- |
| ETH        | 80%     | High       | Very High | Crypto-native leverage |
| wBTC       | 75%     | High       | High      | BTC liquidity          |
| USDC       | 90%     | Very Low   | Very High | Cross-currency borrow  |
| Treasuries | 85%     | Very Low   | High      | Max efficiency         |
| Stocks     | 65%     | Medium     | Medium    | RWA leverage           |
| Gold       | 70%     | Low-Med    | Medium    | Diversified collateral |

## Mixed Collateral

Combine multiple assets in one position:

```
Mixed Collateral Position:
├── 5 ETH ($10,000) @ 80% = $8,000
├── 0.5 wBTC ($15,000) @ 75% = $11,250
└── $5,000 USDC @ 90% = $4,500

Total Borrowing Power: $23,750
```

**Benefits**:

* Diversification reduces single-asset risk
* Optimize capital efficiency
* Flexibility in collateral management

## Adding Collateral

<Steps>
  <Step title="Access Position">
    Go to your borrowing position
  </Step>

  <Step title="Select Asset">
    Choose collateral asset to add
  </Step>

  <Step title="Enter Amount">
    Specify how much to deposit
  </Step>

  <Step title="Confirm">
    Collateral added to position
  </Step>
</Steps>

## Swapping Collateral

Replace one collateral with another:

<Steps>
  <Step title="Withdraw Excess">
    If health factor allows, withdraw some collateral
  </Step>

  <Step title="Deposit New">
    Add different collateral type
  </Step>
</Steps>

<Warning>
  Ensure health factor stays above 1 during swaps. Consider adding new collateral before removing old.
</Warning>

## Collateral Valuation

### Crypto Assets

* **Price Source**: Chainlink oracles
* **Update Frequency**: Every block or on deviation
* **24/7 Pricing**: Yes

### RWA Assets

* **Price Source**: Chainlink + issuer oracles
* **Update Frequency**: Market hours real-time, after-hours at last close
* **Trading Hours Impact**: LTV reduced after hours for volatility buffer

## FAQs

<AccordionGroup>
  <Accordion title="Can I use NFTs as collateral?">
    Not currently. Only fungible tokens are supported.
  </Accordion>

  <Accordion title="What happens to staking rewards on stETH?">
    You keep earning staking rewards while stETH is used as collateral.
  </Accordion>

  <Accordion title="Can I use RWA if I'm in the US?">
    Depends on the specific token. Some RWA tokens restrict US persons. Check token issuer requirements.
  </Accordion>

  <Accordion title="Why is stock LTV lower than crypto?">
    Stocks have trading hours, creating price gaps overnight and weekends. Lower LTV compensates for this uncertainty.
  </Accordion>
</AccordionGroup>

<Card title="RWA Collateral Details" icon="building" href="/products/rwa-collateral/overview">
  Learn more about using real-world assets
</Card>