> For the complete documentation index, see [llms.txt](https://lucia-protocol.gitbook.io/lucia-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://lucia-protocol.gitbook.io/lucia-protocol/low-collateralized-ratio-100.md).

# Low Collateralized Ratio (100%)

Within the traditional lending ecosystem, borrowers often find themselves restrained by high collateral requirements—commonly set at 120% of the loan value. This mandates that borrowers lock in assets exceeding the credit they wish to procure, limiting their financial agility. Lucia Protocol challenges this convention by introducing a revolutionary 100% Collateralized Ratio.

In Lucia's model, this ratio can go as low as 100%, signifying that borrowers can leverage their entire collateral to access equivalent credit amounts. This innovation expands the borrowers' potential for more significant credit access, effectively democratizing financial inclusivity.

<figure><img src="https://2787681558-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FWQHokesx4twoLalR3b7N%2Fuploads%2FT19bA74PN1B31XA2EUpf%2Fimage.png?alt=media&amp;token=8c6fd705-bc37-4ec4-b725-19a718b795e1" alt=""><figcaption></figcaption></figure>

By setting the Collateralized Ratio at 100%, Lucia Protocol amplifies the ability for borrowers to fully capitalize on their assets, offering a more flexible and accessible credit framework.