Collateral Management

The Collateral Management page is where you deposit and withdraw USDT to fund options positions. All collateral operations are on-chain and require a wallet signature.

Collateral Asset

USDT (TestnetUSDT on Monad testnet) is the sole collateral asset for the Diffusal protocol. All margins, premiums, and settlements are denominated in USDT.

Current Balance

The balance panel at the top shows:

• Wallet Balance — USDT in your connected wallet
• Deposited Collateral — USDT currently held in the collateral vault
• Available Margin — Collateral not currently pledged as initial margin
• Used Margin — Initial margin locked across open positions

Depositing Collateral

1. Enter the USDT amount in the Deposit field.
2. Review the margin impact preview, which shows how the deposit changes your available margin.
3. Click Deposit and approve the token transfer in your wallet.
4. Wait for the on-chain transaction to confirm (typically two to five seconds on Monad).

If this is your first deposit, you may need to approve the collateral vault contract to spend your USDT before the deposit transaction is submitted.

Withdrawing Collateral

1. Enter the USDT amount in the Withdraw field. The maximum withdrawable amount is your available margin (total deposited minus used margin).
2. Review the margin impact preview to confirm the withdrawal does not breach maintenance margin.
3. Click Withdraw and sign the transaction in your wallet.

Withdrawals that would push margin utilization above the maintenance threshold are rejected by the contract.

Transaction History

The Transaction History tab lists all deposit and withdrawal events for the connected wallet. Entries include timestamp, amount, transaction hash, and confirmation status.

For the equivalent collateral workflow in the main trading app, see Collateral.