# Asset Security

### [​](https://www.staderlabs.com/docs-v1/SD%20Utility%20Pool/asset-security-and-risks#asset-security)For enhanced SD Utility Pool asset security, the following measures are undertaken by Stader: <a href="#asset-security" id="asset-security"></a>

* **Node Operators deposit to be used as collateral**\
  Stader calculate the Health Factor for each node based on a collateral value, which is half of the Node Operator's ETH deposit (e.g., for a node with one validator, we will consider a collateral value of 2 ETH, even though the node operators deposits 4 ETH.)
* **Liquidation Threshold**\
  Additionally, we consider a liquidation threshold of 70%, i.e. the node will be liquidated if the utilization fees exceeds 70% of the collateral value. In case node operators attempt to exit without settling their utilized $SD, a portion of their ETH deposit will be locked until they clear their utilization fees.
* **External Audit**[**​**](https://www.staderlabs.com/docs-v1/SD%20Utility%20Pool/asset-security-and-risks#external-audit)\
  SD Utility Pool has undergone a comprehensive audit and has been thoroughly evaluated for security and functionality by the highly renowned auditor SigmaPrime. [Audit Report](https://www.staderlabs.com/audits/SDUtilityPool/SD_Utility_Pool_Audit_Report_by_SigmaPrime.pdf)


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://stader.gitbook.io/stader/sd-utility-pool/asset-security.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.