Minimum collateral refers to the minimum amount of assets that must be held to secure a loan or investment in a given platform. It acts as a safety measure to protect lenders against defaults. In the case of crypto loans, collateral is usually required in the form of cryptocurrency. For instance, if a borrower wants to take out a loan worth $1,000, the platform might require them to deposit $1,500 worth of cryptocurrency as collateral. This ensures that if the borrower fails to repay the loan, the lender can liquidate the collateral to recover their funds.Minimum collateral requirements can vary based on several factors, including the volatility of the asset being used and the risk profile of the borrower. Higher volatility typically results in higher collateral requirements, as the value of the collateral can fluctuate rapidly.In essence, minimum collateral serves as a risk management tool, ensuring that lenders are protected while still allowing borrowers to access liquidity.