> For the complete documentation index, see [llms.txt](https://docs.spydra.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.spydra.app/open-rwa-paper/orwa-collateralization-model/smart-contract-enforcement.md).

# Smart Contract Enforcement

* Automated Loan Management: The collateralization process is managed by smart contracts, which automatically enforce the terms of the loan. If the value of the collateral falls below a certain threshold, the smart contract may initiate protective measures such as margin calls or liquidation to safeguard the lender’s interests.