# Volatile Asset Collateral #### Abstract Volatile Asset Collateral (VAC) is a VDEX asset standard that supports the collateralization of crypto majors at face value. Bitcoin and Ethereum deposits receive margin or yield equity equal to the present value of those assets. As the values of collateralized assets change, margin is added or subtracted proportionally. In cases of profit and positive yield, USD-denominated state is added. In cases of loss, USD-denominated state is subtracted, but the underlying VAC is not converted until withdrawal or liquidation. This means that if losses are reversed, the principle VAC is untouched. #### Features * Funding arbitrage * Delta-neutral hedging * Sustainable Bitcoin Yield --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.vdex.trade/protocol/whitepaper/volatile-asset-collateral.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.