# Collateral Optimization Engine The Ithaca Protocol enforces trustless counterparty risk free on-chain settlement. The Ithaca Collateral Optimization Engine determines collateral requirements based on a user's portfolio maximum potential loss. All collateral is held within an escrow-like smart contract called [FundLock.](https://docs.ithacaprotocol.io/docs/architecture/user-funds#the-fundlock-contract) --- # 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://docs.ithacaprotocol.io/docs/architecture/post-match-processing/collateral-optimization-engine.md?ask= ``` 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.