> For the complete documentation index, see [llms.txt](https://docs-defi.loopring.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs-defi.loopring.io/products/portal/collateral-management.md).

# Collateral Management

## Collateral Management

Collateral is the foundation of your leverage on Portal. This page explains how to manage it effectively to reduce risk and support open positions.

***

### What Is Collateral?

Collateral is the asset you deposit into Portal to support leveraged positions. It determines your **margin level** and affects how much you can borrow.

You can deposit:

* **ETH**
* **USDC**
* **USDT**

***

### How to Deposit Collateral

Depositing collateral is done from the **Dashboard** tab within **Portal**.

To deposit:

1. Navigate to **Portal** on Loopring DeFi.
2. Click the **Dashboard** tab at the top.
3. Select **Collateral Management**.
4. Choose to **Supply** either **ETH**, **USDC**, or **USDT**.
5. Enter the amount you wish to deposit and confirm the transaction in your wallet.

Once deposited, your collateral will appear in your balance and begin supporting your positions immediately.

***

### How Collateral Affects Margin

The more collateral you deposit, the **higher your margin level**, and the **less risk** of liquidation.

* Adding collateral increases your ability to borrow or withstand volatility.
* Removing collateral reduces your **margin level** and may increase liquidation risk.

{% hint style="success" %}
💡 Keep your margin level above 1.5 to stay in a low-risk zone.
{% endhint %}

***

### Withdrawing Collateral

Withdrawing collateral is done from the **Dashboard** tab within **Portal**.

To withdraw:

1. Go to the **Portal** section in Loopring DeFi.
2. Click the **Dashboard** tab.
3. Select **Collateral Management**.
4. Click **Reduce** and then select the token you'd like to withdraw.
5. Enter the amount and confirm the transaction in your wallet.

***

#### Withdrawal Limitations

You can only withdraw collateral that exceeds **twice the value of your total debt**. This ensures that your margin level remains healthy and avoids triggering liquidation.

{% hint style="warning" %}
⚠️ Withdrawing too much collateral can lower your margin level and put your position at risk of liquidation.
{% endhint %}

<details>

<summary>Example: How much can I withdraw?</summary>

Let's say you have:

* **Total collateral**: $600
* **Total debt**: $200

Because your collateral is **3×** your debt, you're above the required **2×** threshold.

You can withdraw up to **$200** in this scenario while still maintaining a healthy margin level.

If your collateral falls below twice your debt, the **Reduce** option will not allow further withdrawals.

</details>

***

### Best Practices

* Always monitor your **margin level** when adding or withdrawing collateral.
* It’s recommended to use stablecoins (USDC or USDT) as collateral to avoid dual volatility exposure.
* Recheck your position after each collateral action to ensure it remains stable.

***

## 🔗 Quick Access

* [Back to Portal Overview](/products/portal.md)
* [Understanding Margin & Liquidation](/products/portal/margin-and-liquidation.md)


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