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How Does a Protocol Use Tokenized Assets to Meet Margin Requirements?

Users deposit tokenized assets into a smart contract which constantly monitors their value to automatically enforce margin requirements.
Greeks.Live16.11.25

How Does a Protocol Use Tokenized Assets to Meet Margin Requirements?

A decentralized derivatives protocol allows users to deposit tokenized assets (like ETH, stablecoins, or even LP tokens) into a smart contract as collateral to meet initial and maintenance margin requirements. The contract constantly monitors the value of these tokenized assets against the position's liability, automatically enforcing the required collateralization ratio on-chain.

How Does a Smart Contract Perform a Margin Call and Liquidation?
How Can a Protocol’s Gas Fee Structure Influence the Reported Number of Active Users?
What Is the Function of an On-Chain Margin Account for Derivatives Trading?
How Can Smart Contracts Enforce Compliance Rules on Token Transfers?

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