A damn good post @sapwood!

"At any given time, (Collateral value) has to be greater than (Loan value + Accumulated interest), otherwise, it will be deemed unsafe and hence will trigger the liquidation of the asset."

This sentence is what stood out for me. Securing debt with collateral that has any significant price volatility can be risky. But I do understand the context, if you're on the right side of the trade so to speak, then this can be an effective way to access capital.