# 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)
