Description: The term ‘Uncollateralized’ refers to loans or transactions that do not require the presentation of an asset as collateral. In the context of finance and blockchain technology, this concept has gained relevance, especially in decentralized platforms. Unlike traditional loans, where borrowers must offer assets as collateral to secure repayment, uncollateralized loans allow users to access funds without the need to commit assets. This translates into greater accessibility and flexibility for borrowers, who can obtain liquidity more quickly and easily. However, this modality also carries risks, as lenders assume a higher level of uncertainty by not having tangible guarantees. In various ecosystems characterized by high speed and low transaction costs, uncollateralized loans have become an attractive option for users looking to take advantage of investment opportunities without the obstacles imposed by collateralization requirements.
