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

# Why borrowers provide more than they borrow

> How the collateral system protects depositors and what happens when it is tested.

# More collateral than the amount borrowed

Before accessing liquidity, a borrower must provide collateral worth more than the amount borrowed. The required level is typically between 120% and 150%.

## The mechanism in three steps

1. **Provide collateral:** Collateral is locked before borrowing
2. **Monitor its value:** The ratio is checked continuously
3. **Act automatically:** If the threshold is reached, collateral can be sold to repay the borrowing

Keyrock Curation Services selects and monitors supported venues, collateral quality and strategy parameters.

This mechanism reduces direct exposure to an individual borrower. It does not remove loss, liquidity or technical risks.