Maintain Collateral Safety Score (CHF)

Represents a number that shows how safe your loan is on the platform. Think of it as a safety score for your vault: the higher the CHF, the safer your position. To keep your assets protected, your CHF must always stay above 100.5%. If it falls below this level, the system may automatically sell some of your collateral to pay back your loan. For example, if your CHF is 110%, you have a 10% safety cushion. This rule helps prevent big losses for both you and the platform, especially during sudden market drops.

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