> For the complete documentation index, see [llms.txt](https://docs.primefi.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.primefi.xyz/product/lend/collateral.md).

# Collateral

After depositing an asset, you can choose whether to use it as collateral. Collateralizing an asset activates your borrowing power, but it also makes the asset available for partial liquidation if your account becomes insolvent.

You can enable collateralization on the asset details page or through the Dashboard (shown below).

<div data-full-width="true"><figure><img src="/files/RinwGXHnSwaRzbliqS7M" alt=""><figcaption></figcaption></figure></div>

By default, all deposits are enabled as collateral. However, you can opt out for individual assets in the "Deposits" section of the Dashboard.

{% hint style="info" %}
To exclude an asset from being used as collateral, simply toggle the "Collateral" button next to the asset and confirm the transaction.
{% endhint %}

<figure><img src="/files/RKGbzkIHWl9X6sS8lgTL" alt=""><figcaption></figcaption></figure>

{% hint style="danger" %}
Please be cautious if you decide to withdraw assets as collateral. Market volatility can lead to liquidation risks.
{% endhint %}


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