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      Crypto Glossary
      # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

      What is a Collateral Factor (Crypto Loan)?

      Imagine you want a loan to buy a new phone, but instead of using dollars, you offer your old laptop as collateral (security). The Collateral Factor is like a percentage limit on how much you can borrow based on the value of your laptop. So, if your laptop is worth $100 and the collateral factor is 50%, the most you could borrow would be $50.
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