Move Collateral Before a Lending Top-Up

Move collateral before a lending top-up by checking the loan’s health factor, transferring an accepted asset to the lending market’s chain, then supplying it to the position. A token in your wallet does not count as collateral until the market records it as supplied.

What should you check before moving collateral?

Check the position’s health factor, accepted collateral, and network in the lending market’s interface. The health factor estimates how close the position is to liquidation; its formula and thresholds vary by market, so use the figures shown for your loan rather than a general rule.

Then compare the collateral you hold with what the position can accept. A market may support a token on one chain but not another, and similarly named tokens can have different contract addresses or risk settings. Check the asset and network in the supply screen before transferring.

• Record the current health factor and the market’s liquidation threshold.
• Confirm the asset, token contract and destination network match the market’s accepted collateral.
• Check whether you have enough of the destination network’s native token to pay for transactions.
• Estimate the amount needed, including transfer fees and any price movement before supply.

How do you move collateral across chains?

A bridge transfers tokens between networks; it does not, by itself, add them to a lending position. Choose a route that delivers the asset in a form the destination market accepts, and check the quoted amount after fees before approving the transfer.

The bungee bridge guide explains the transfer flow in more detail. After the transfer, wait for the destination wallet to show the funds and confirm the token and network before opening the lending market’s supply transaction.

Some routes require separate transactions on the source and destination networks; others may handle more of the route in one flow. In either case, review the wallet’s transaction details and make sure you can pay any destination-side network fee. A transfer marked complete by one interface may still need time to appear in another.

When should you add the collateral to the loan?

Supply the funds once they arrive, then check the updated position in the lending market. A wallet balance alone does not change the loan’s collateral value, borrowing limit or health factor; the supply transaction must be confirmed and reflected in the position.

For a top-up, aim to add enough collateral to create room for ordinary price changes and fees, rather than targeting the liquidation threshold. The amount depends on the asset’s value, the market’s risk parameters and your existing debt, so use the market’s preview and updated position figures to judge the result.

If liquidation is near, a bridge transfer adds timing and execution uncertainty. Price changes, fees, or a delayed transaction can alter the result while funds are in transit. Check the position again after supply, and confirm that the health factor improved before treating the top-up as complete.