# Minimum Collateral Ratio (MCR)

The Minimum Collateral Ratio (MCR) is the lowest collateralization ratio a Trove must maintain to avoid liquidation. This ensures that each Trove has enough collateral to cover for the debt.

* ETH collateral requires a collateral ratio of at least 110%
* wstETH and rETH collateral require a collateral ratio of at least 120% 

The Critical Collateral Ratio (CCR) is a threshold that mirrors the total market collateralization. When the Total Collateral Ratio (TCR) drops below the CCR, new borrows are halted, and collateral withdrawals are limited unless accompanied by debt repayments (to maintain the protocol’s health).

* The CCR for ETH is set to 150%
* The CCR for wstETH and rETH are set to 160%

The Shutdown Collateral Ratio (SCR) is a threshold that, if met, triggers a market shutdown to protect the protocol during extreme scenarios (such as a price collapse or oracle failure). Borrowing is halted, and emergency redemptions are enabled to clear the debt as soon as possible. 

* The SCR for ETH is set to 110%
* The SCR for wstETH and rETH is set to 120% 

***

## Related Articles:

* [Liquity V2](https://help.defisaver.com/protocols/liquity-v2)
* [Borrowing Rates and Redemptions](https://help.defisaver.com/protocols/liquity-v2/borrowing-rates-and-redemptions)


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