# Collateral ### Collateralizing Assets After a user has supplied assets into the protocol, they will begin earning interest automatically; however, their tokens won't automatically be usable as collateral. In order to activate an asset to be used as collateral, toggle the collateral slider in the market dashboard and approve the contract. A user can then borrow against their assets based on the amount of principal supplied and the collateral factor. The collateral factor is the maximum amount users can borrow for a given asset they have supplied. For example: * When a user supplies 100 USDC with a collateral factor of 85%, they can borrow as much as 85 USDC worth of other assets at a given time. If a user supplies two or more assets, then the amount they can borrow is determined by a weighted average. If a user supplied $50 USDC with a 85% collateral factor and $50 of WBTC with a collateral factor of 75%, then the user could borrow up to $80 USD. ### Account Liquidity An easy way to obtain your account's total liquidity if you have supplied multiple assets as collateral is to go to Unitroller contract address found in the [Deployed Contracts](broken://pages/jstpINUSFir9ipp0podB) section and enter your address into the `getAccountLiquidity` method. This returns the (error, current liquidity, shortfall). Current liquidity is the maximum USD value that an account can borrow before reaching liquidation. If an account reaches liquidation, then shortfall will return the USD value of abs((USD value of principal x collateral factor) - borrow balance). ### Price Accuracy Ursa uses verified, secure price feeds for every asset it offers. This is how the protocol accurately calculates the maximum borrow rate, or if a user's account is insolvent. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.ursa.finance/ursa/documentation/technical-overview/collateral.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.