We assess the collateral value by deducting a certain safety margin from the fair value of the asset provided as collateral. This is to ensure that if the fair value of the asset declines, you will have no trouble repaying the loan. The collateral value of the home you buy is 75% of its price. Different asset classes have different collateral values. However, if the collateral value declines over time, we will not require additional collateral from you as long as this is considered normal decline in the collateral value.