Required collateral ratio is the collateral ratio required to mint more Acala Dollar. If your
Current ratio is below required collateral ratio, you can no longer take out more loans. The Required Collateral Ratio is generally above the Liquidation Ratio, serving as a safety buffer. If your loan's current ratio hits the Liquidation Ratio, the loan will be automatically liquidated. The Required Collateral Ratio prevents further Acala Dollar minting therefore prevents current ratio to drop further below.