Collateral Management

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Add Collateral

import { usePostLoanManager } from '@/services/hooks/mutations/use-post-loan-manager';

const { mutate: addCollateral } = usePostLoanManager('add');

addCollateral({
  userId: 'cf3db3f5-63ef-4e5d-a6a4-bdef0160191e',
  opId: 'edaa7bd5-00d6-40b6-8b27-f21e3b06c561',
  amount: '0.0001'
});

​

Path Parameters

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Request Body

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Response

• collat: Increased by the added amount
• ratio: Improved collateral ratio
• apr: Potentially lower if moved to a better tier
• tierNum: May change to a lower-rate tier
• liqPrice: Lower liquidation price (safer)
• lastUpdate.type: Set to ADD_COLLAT
• lastUpdate.dCollat: Amount of collateral added

​

Response Example

{
  "typeId": "ETH_USDT",
  "operation": {
    "id": "edaa7bd5-00d6-40b6-8b27-f21e3b06c561",
    "status": "ACTIVE"
  },
  "status": "ACTIVE",
  "size": "1",
  "collat": "0.00102649",
  "debt": "1.01",
  "interest": "0.01",
  "ratio": "2.0085071672759779",
  "liqPrice": "1173.4416677220430788",
  "apr": "0.0975",
  "tierNum": 1,
  "tiers": [
    {
      "minRatio": "1.2",
      "minPrice": "1173.4416677220430788",
      "apr": "0.135"
    },
    {
      "minRatio": "1.5",
      "minPrice": "1466.8020846525538486",
      "apr": "0.0975"
    },
    {
      "minRatio": "2",
      "minPrice": "1955.7361128700717981",
      "apr": "0.05"
    }
  ],
  "lastUpdate": {
    "createdAt": "2026-02-05T17:49:33.699620511Z",
    "type": "ADD_COLLAT",
    "status": "ACTIVE",
    "apr": "0.0975",
    "dCollat": "0.0001",
    "dRepayed": "0",
    "price": "1964.055",
    "dFees": "0",
    "forcedLiq": false
  }
}

​

Remove Collateral

import { usePostLoanManager } from '@/services/hooks/mutations/use-post-loan-manager';

const { mutate: removeCollateral } = usePostLoanManager('remove');

removeCollateral({
  userId: '79f970d7-3b2f-492c-a358-6c1f1c2fd429',
  opId: '389ae85b-7968-4086-b7e3-2b53dc4fe6ed',
  amount: '0.04018674'
});

​

Path Parameters

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Request Body

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Response

• collat: Decreased by the removed amount
• ratio: Reduced collateral ratio
• apr: Potentially higher if moved to a higher-risk tier
• tierNum: May change to a higher-rate tier
• liqPrice: Higher liquidation price (more risk)
• lastUpdate.type: Set to REM_COLLAT
• lastUpdate.dCollat: Negative value representing removal

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Important Notes

• Cannot remove collateral that would bring the ratio below minCollatRatio
• Removing collateral may trigger an APR tier change
• Monitor the liqPrice field to understand your liquidation risk
• Consider market volatility when removing collateral

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Collateral Ratio Tiers

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Example Tier Structure (ETH_USDT)

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Collateral Ratio Calculation

Collateral Ratio = (Collateral Amount × Collateral Price) / Total Debt

• Collateral: 0.00102649 ETH
• ETH Price: $1,964.055
• Debt: 1.01 USDT

Ratio = (0.00102649 × 1964.055) / 1.01
      = 2.0085071672759779
      = ~200% collateralization

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Managing Collateral Strategically

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Adding Collateral

• Market is volatile and you want to reduce liquidation risk
• You’re close to dropping to a higher APR tier
• You want to qualify for a lower interest rate tier
• Your current ratio is approaching the margin call level

• Lower liquidation risk
• Potentially lower APR
• More buffer against price fluctuations
• Peace of mind during market downturns

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Removing Collateral

• You have excess collateral well above required ratios
• You want to deploy collateral elsewhere
• Market conditions are stable
• You need liquidity for other opportunities

• Increased liquidation risk
• May trigger higher APR tier
• Less protection against sudden market moves
• Margin call risk if market drops

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Liquidation Protection

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Understanding Liquidation Price

// Example from active loan
{
  "liqPrice": "1173.4416677220430788",
  "collat": "0.00102649",
  "debt": "1.01"
}

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Margin Call vs Forced Liquidation

• Margin Call Ratio (e.g., 1.3): Warning zone - add collateral recommended
• Liquidation Ratio (e.g., 1.2): Automatic liquidation can occur
• Forced Liquidation: When forcedLiq: true, liquidation is in process

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Avoiding Liquidation

1. Maintain healthy collateral ratios (aim for 2.0 or higher)
2. Monitor market conditions and price movements
3. Add collateral proactively during market downturns
4. Set up alerts for margin call notifications
5. Keep reserve collateral available for emergencies

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TypeScript Types

// Add/Remove collateral request
interface CollateralManagementRequest {
  userId: string;
  opId: string;      // Loan operation ID
  amount: string;    // Amount to add or remove
}

// Collateral tier structure
interface CollateralTier {
  minRatio: string;  // Minimum ratio for this tier (e.g., "1.5")
  minPrice: string;  // Corresponding collateral price
  apr: string;       // Annual percentage rate (e.g., "0.0975" = 9.75%)
}

// Loan with collateral details
interface LoanWithCollateral {
  collat: string;              // Current collateral amount
  ratio: string;               // Current collateral ratio
  liqPrice: string;            // Liquidation price
  apr: string;                 // Current APR based on tier
  tierNum: number;             // Active tier (0-based index)
  minCollat: string;           // Minimum required collateral
  tiers: CollateralTier[];     // Available tiers
  forcedLiq: boolean;          // Forced liquidation status
}