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What Is the Margin in a Secured Credit?

Definition and how margin works in overcollateralized credits.

Updated over a week ago

The margin represents the ratio between the value of your collateral and the total amount owed for the credit, expressed as a percentage.
This indicator helps measure the strength of your collateral compared to the amount of credit you’ve requested.

Formula:
Margin (%) = (Collateral Value / Credit Amount) × 100

Example:

  • Credit amount: 1,000 USDT

  • Collateral: 2,000 USDT

  • Margin = (2,000 / 1,000) × 100 = 200%

This means your collateral is twice the amount of your credit.


Minimum required margin: 120%

At Quantia, all credits must be overcollateralized.
If your margin drops below this value — for example, due to a decrease in the collateral’s market price — an automatic liquidation will be triggered. This means part or all of your collateral may be used to repay the outstanding credit.


Real-time monitoring
You can track the status of your credit and margin at any time directly from your Quantia account.

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