# Collateral Collateral is an asset that a borrower pledges as security for a loan. SRWA Lending Protocol is overcollateralized, which means that the user has to have more collateral then the loan value. Collateralization is calculated using Loan-To-Value ratio. LTV Ratio is set by the admins on every pool and represents the assessment of lending risk for that pool. User can deposit one asset and take out a loan in another, so the collateral is calculated like a sum of all deposits multiplied with LTV Ratio minus sum of all loans. SUM(i) { user\_deposit\_balance\[i] \* pool\_ltv\_ratio\[i] } --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://srwa.gitbook.io/srwa-docs/core-calculations/collateral.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.