Those funds are not actively being used to borrow and;
Withdrawal of those assets would not cause a liquidation on your loans.
Enable the use of assets as collateral
Users have to enable the use of deposited asset as collateral for borrowing. The toggle can be found at the “Deposit” tab under “My Account”. The Borrow Limit will then automatically adjust based on the amount of collateral made available.
Depositors will receive continuous earnings (interest) on their deposited assets. The earning rates adjust algorithmically for each asset based on their independent market conditions.
The auToken is a representation of user’s asset balance supplied to the Aurigami protocol. auToken minted will be based on the underlying asset deposited to the protocol (auUSDC, auDAI etc). The exchange rate between auTokens to the underlying appreciates as more interest is earned in the market.