> For the complete documentation index, see [llms.txt](https://docs.openeden.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.openeden.com/prism/collateralization-ratio.md).

# Collateralization Ratio

The collateral ratio is calculated by comparing AUM against PRISM circulating supply using the following formula:

```
Collateral Ratio = (AUM / PRISM Circulating Supply) * 100%
```