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Why Might a CCP Apply a 100% Haircut to a Specific Type of Cryptocurrency Collateral?

Because the asset is deemed too illiquid, volatile, or operationally risky to be reliable collateral in a default scenario.
Greeks.Live15.11.25

Why Might a CCP Apply a 100% Haircut to a Specific Type of Cryptocurrency Collateral?

A 100% haircut means the asset is deemed to have zero value as collateral for margin purposes. This would be applied to a cryptocurrency that is highly illiquid, extremely volatile, or poses significant operational/custody risks.

It is a risk management decision to completely exclude the asset from the eligible collateral pool due to its unreliability in a default scenario.

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