---
title: "What does the Collateral (liquid funds) under Funds mean?"
description: "Collateral (liquid funds) refers to the margin you receive from pledged liquidbees ETFs and liquid mutual funds after deducting a haircut. This margin…"
category: arrow
subcategory: general
slug: what-does-the-collateral-liquid-funds-under-funds-mean
canonical: https://support.arrow.trade/arrow/general/what-does-the-collateral-liquid-funds-under-funds-mean/
---

# What does the Collateral (liquid funds) under Funds mean?

> Collateral (liquid funds) refers to the margin you receive from pledged liquidbees ETFs and liquid mutual funds after deducting a haircut. This margin…

## Short answer

Collateral (liquid funds) refers to the margin you receive from pledged liquidbees ETFs and liquid mutual funds after deducting a haircut. This margin is considered as cash equivalent.

## Exchange requirements for F&O positions

Exchanges require 50% of the margin for F&O positions to be in cash or cash equivalent collateral, while the remaining 50% can be in non-cash collateral margin.

If you have a shortfall in cash margin requirement for overnight positions and fund it with non-cash collateral, a delayed payment charge of 0.035% per day or 12.775% per annum applies on the shortfall amount. An 18% GST is levied on this charge.

## Where to view collateral

If you have pledged liquidbees ETFs or liquid mutual funds, you can view the margin from pledge in the Collateral (liquid funds) section on the funds tab on Arrow.

You can find the list of approved instruments for pledging and applicable haircut percentages by visiting arrow.trade/approved-securities.

## Related

- Browse more in [general](/arrow/general/)
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Source: https://support.arrow.trade/arrow/general/what-does-the-collateral-liquid-funds-under-funds-mean/
Publisher: Arrow / iRage Broking Services LLP