# 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.

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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.