For instance, at the moment of a loan issuance a securities collateral is valued at $10,000. If a securities market experiences a constant price decline, a Borrower can convert the collateral to stablecoin BUSD any time or set up an automatic conversion to stablecoin BUSD. For example, when the securities’ collateral value reaches 65% of its initial value at loan issuance, $6,500, the borrower can choose to convert them to BUSD. If the collateral value continues to decline and drops to $5,500 (the liquidation value), the Borrower’s funds will not be liquidated.