> For the complete documentation index, see [llms.txt](https://docs.invast.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.invast.io/rwa-suite-and-dapp-ecosystem/lending-and-borrowing-platform/collateralized-borrowing.md).

# Collateralized Borrowing

* Borrowers can deposit tokenized RWAs (e.g., real estate NFTs, tokenized commodities) as collateral to borrow capital.
* Loans will be over-collateralized to manage risk, ensuring that borrowers must maintain a minimum collateralization ratio (e.g., 125%-150%, depending on the asset class). 
* Collateral will be liquidated automatically if its value drops below a set threshold, protecting lenders.