> For the complete documentation index, see [llms.txt](https://docs.ambient.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ambient.finance/concepts/surplus-collateral.md). # Surplus Collateral Ambient provides the ability for users to directly deposit tokens in the DEX contract in the form of *surplus collateral*. Unlike collateral provided to support LP positions, surplus collateral sits idle and is not tied to any specific liquidity pool. At this point surplus collateral provides no yield, and will stay stable at its deposited amount without any rebalancing or loss. Surplus collateral can be thought of as a form of light-weight working capital, that's significantly more flexible and efficient than the traditional model of holding tokens outside the DEX. In *instant settlement mode,* a Ambient swap, mint or burn operation will directly pay or collect tokens from the user's wallet. Surplus collateral allows for debits or credits to be paid to the user's balance held inside the DEX contract. This avoids any token transfer associated with the swap, mint or burn, and instead involves a simple update of a single counter inside the DEX contract. An active trader can consolidate what would otherwise be a large number of token transfers across many trades, into a single net settlement at their convenience. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.ambient.finance/concepts/surplus-collateral.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.