Lighter announced that users can now use “weETH as collateral to trade perps.” Its live asset API also lists weETH’s margin status as enabled.
Lighter Collateral Terms
Source: Lighter asset API, Oct. 23, 2026 snapshot. Supply caps are denominated in each row’s asset, not dollars. Liquidation thresholds weight collateral in the account-wide health calculation.
The addition extends Lighter’s unified collateral system, introduced earlier this year. Multi-asset margin is available only to accounts with Unified Trading Accounts enabled. $USDC remains the base collateral, valued at 100% without a supply cap.
Collateral Can Be Liquidated Alongside Perps
The 70% weighting governs opening positions; liquidation uses a separate calculation that counts 85% of weETH’s index value. That is not a standalone borrowing limit: Lighter combines collateral with the account’s $USDC portfolio balance, including unrealized perpetual trading gains or losses, and checks it against maintenance margin requirements.
A falling collateral index price can therefore shrink the liquidation buffer even without a change in the trader’s positions. The published collateral rules specify index-based valuation but do not identify whether weETH’s index tracks a traded market price or an $ETH redemption rate. That distinction matters because a market discount to underlying $ETH need not affect those two measures equally.
Ether.fi also warns that third-party integrations introduce oracle, liquidity and liquidation risks. Redeeming weETH for underlying $ETH is not necessarily immediate: completion depends on protocol liquidity, validator withdrawals and network conditions.
If an account breaches maintenance requirements, Lighter cancels open orders first and can then close both perpetual positions and spot collateral through their order books. For partial liquidation of weETH collateral, its rules set a minimum execution value of 95% of the index price, with a liquidation fee of up to 2% constrained by that floor.
