Additional Collateral

You can boost your loan's collateral value by adding NFTs from approved collections. These NFTs don't have TDH concerns, so they're traditionally escrowed (transferred to the contract).

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Why Add Additional Collateral?

Improve LTV

If your primary NFT doesn't support the loan amount you need:

Primary NFT floor:    2 ETH
Max borrow at 50% LTV: 1 ETH

Add additional collateral worth 1 ETH:
Total collateral:     3 ETH
Max borrow at 50% LTV: 1.5 ETH

Reduce Lender Risk

More collateral = lower risk = potentially better rates (if negotiating).

Meet Requirements

Some lenders may require additional collateral for larger loans.

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How It Works

1. Approved Collections

Only NFTs from admin-approved collections can be used:

• Each collection has a floor price set by the admin
• Prices are updated periodically
• Check the app for current approved collections

2. LTV Requirement

Additional collateral follows 80% LTV:

To add 1 ETH of additional borrowing capacity:
Required collateral value = 1 ETH / 0.8 = 1.25 ETH

3. Escrow

Unlike your primary TDH-bearing NFT, additional collateral IS transferred to the escrow contract:

Your wallet → TDHAdditionalCollateral contract

This is safe because these NFTs don't have TDH concerns.

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Adding Collateral

When Can You Add?

• After your loan is created (PENDING_ACTIVATION or ACTIVE)
• Before repayment/liquidation
• You must be the borrower

Steps

1. Go to your loan details
2. Click "Add Collateral"
3. Select NFTs from approved collections
4. Approve the Additional Collateral contract
5. Confirm the transaction
6. NFTs are transferred to escrow

Limits

• Maximum 20 additional NFTs per loan
• Only from approved collections
• Must have floor price set

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What Happens to Additional Collateral?

On Repayment

All additional collateral is returned to you:

TDHAdditionalCollateral → Your wallet

On Liquidation/Default

All additional collateral goes to the lender:

TDHAdditionalCollateral → Lender's wallet

On Cheating (Deposit Mode)

Additional collateral goes to the lender along with the slashed deposit.

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Approved Collections

Check the app for the current list. Typical approved collections:

Collection	Floor Price	Notes
Collection A	0.5 ETH	Updated weekly
Collection B	1.2 ETH	Updated weekly
...	...	...

Floor prices are set by the protocol admin and should reflect market prices. They're conservative estimates (usually slightly below actual floor).

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Calculating Value

Your Additional Collateral Value

Total Value = Σ (Floor Price of each NFT)

Example:

NFT #1 from Collection A: 0.5 ETH
NFT #2 from Collection A: 0.5 ETH
NFT #3 from Collection B: 1.2 ETH
Total: 2.2 ETH

Max Additional Borrow

Max Borrow = Total Value × 80%
           = 2.2 ETH × 0.8
           = 1.76 ETH

Required Value for Target Borrow

Required Value = Target Borrow / 0.8
               = 1 ETH / 0.8
               = 1.25 ETH

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View Functions

The contract provides helpful view functions:

getCollateralValue(loanId)

Returns total floor value of all additional collateral for a loan.

getMaxBorrowAmount(loanId)

Returns maximum borrowable amount against the additional collateral.

getRequiredCollateralValue(loanAmount)

Returns minimum collateral value needed for a given loan amount.

getLoanCollateral(loanId)

Returns array of all collateral items (contract address + token ID).

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Important Notes

These NFTs Leave Your Wallet

Unlike your primary TDH-bearing NFT, additional collateral IS escrowed. Don't add NFTs you need for other purposes.

Floor Prices May Change

If floor prices drop significantly, your collateral value decreases. This doesn't affect existing loans, but consider the risk.

Admin-Set Prices

Floor prices are set by the protocol admin, not by oracle. They may lag actual market prices.

Not Required

Additional collateral is optional. Many loans work fine with just the primary NFT.

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FAQ

Can I remove additional collateral during the loan?

No. Once added, it stays until repayment or liquidation.

What if the floor price drops to zero?

The collection might be removed from the approved list, but your existing collateral stays locked.

Can I add collateral to someone else's loan?

No. Only the borrower can add collateral.

Do I earn anything while NFTs are escrowed?

No. The NFTs are held by the contract. Any airdrops or rewards would go to the contract (and are not recoverable).

What if my NFT is stuck?

NFTs are released on repayment or liquidation. If there's a bug, contact the team (but this shouldn't happen).

Can the admin take my escrowed NFTs?

No. The contract only allows release to borrower (repayment) or lender (liquidation). There's no admin withdrawal function.