The Collateral Ratio is the ratio between the value of the collateral and the value of the generated H2O on a given Vault. For example: Let's say the LP tokens locked in a user’s Vault is worth $300, and 100 units of H2O is generated. This means the Collateral Ratio is 300% (300/100). For each 1 H2O, there is $3 worth of collateral value backing it. In the Defrost Protocol, your vault may be liquidated if it falls below the Minimum Collateral Ratio.