# What is Fully Collateralized?

Positions are backed by cash or equivalent up front, so payouts do not rely on leveraged credit from the trader.

## In real work

Because markets are fully collateralized, a losing Yes position cannot create unfunded settlement risk.

## Related terms

- [Prediction Market](https://prompthausapp.com/learn/prediction-market.md)
- [Event Contract](https://prompthausapp.com/learn/event-contract.md)
- [Binary Market](https://prompthausapp.com/learn/binary-market.md)
- [Implied Probability](https://prompthausapp.com/learn/implied-probability.md)
- [Outcome Share](https://prompthausapp.com/learn/outcome-share.md)

## How is this different from Googling it?

Google gives a definition. Prompthaus pairs each term with how it shows up in standups, PRs, prompts, and design reviews—then quizzes you until the word sticks. One term a day on iPhone.

- Category: Prediction Markets
- HTML: https://prompthausapp.com/learn/fully-collateralized
- App Store: https://apps.apple.com/us/app/prompthaus-ai-vocabulary/id6776314407