What does the term ‘collateral’ mean?

Collateral is property or assets pledged by a borrower to protect the interests of the lender. In order to secure a loan from Abra, we (Abra) require the borrower to deposit cryptocurrency to protect the value of the loan.

Example: In order to borrow $10,000 AbraUSD from Abra, a borrower might protect the loan by depositing $20,000 worth of bitcoin as collateral. If the collateral value falls below certain thresholds, the Abra app will attempt to restore the health of the loan by prompting the user to place additional collateral or by liquidating the available collateral.