# Trade Collateral

Supala introduces a tradeable collateral mechanism that allows users to actively manage their collateral without closing existing borrowing positions. Unlike traditional lending protocols where collateral is static, Supala enables users to trade, rebalance, or rotate tokenized stock collateral while maintaining open debt.

This feature allows users to adjust portfolio exposure, respond to market conditions, and optimize risk without incurring the cost of repaying loans or re-opening positions. Collateral trades are executed within protocol-defined risk parameters to ensure position safety and prevent undercollateralization.

Tradeable collateral transforms lending from a passive action into an active capital management strategy, unlocking a new DeFi primitive where borrowing and trading operate in parallel.

<figure><img src="/files/clPxxzuDGzo6BFEw4PkE" alt=""><figcaption></figcaption></figure>


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