# Set Collateral

If the App asks you to set collateral, it means that you need to have at least 5 ADA on a separate UTxO to transact within the app.  That is how some Cardano smart contracts work.

The following guides will help you:

<details>

<summary>Eternl Wallet</summary>

1. Open your wallet and click on "Wallet Settings"

<img src="https://2637135070-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4wUNxxjszIH28RfMOV63%2Fuploads%2FRqwnENyj6euCHjIg8S9T%2FScreenshot%202024-05-14%20at%2015.52.26.png?alt=media&#x26;token=58f4e64f-5ce4-48d4-815d-7398fb7bf4a4" alt="" data-size="original">

2. Unfold the "Collateral" dropdown

<img src="https://2637135070-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4wUNxxjszIH28RfMOV63%2Fuploads%2FBvcsAK4tB8tBHhM2q4Vb%2F%20.png?alt=media&#x26;token=c67383f2-383b-4cb6-b065-e0221369adaa" alt="" data-size="original">

3. Click on the "Set Collateral" button and sign the transaction

&#x20;![](https://2637135070-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4wUNxxjszIH28RfMOV63%2Fuploads%2FYqTpXzAWBYeqyZueFSqb%2FScreenshot%202024-05-14%20at%2015.53.06.png?alt=media\&token=b3f03c9a-c9d4-4821-b373-02411acd4c70)

</details>

<details>

<summary>Nami Wallet</summary>

1. Open the Nami extension and click on the avatar at the top right corner

![](https://2637135070-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4wUNxxjszIH28RfMOV63%2Fuploads%2FCpAp7JALN2ZLb2n43gPV%2FScreenshot%202024-05-14%20at%2016.06.20.png?alt=media\&token=09839dc5-a2d5-4d9a-a6cd-d5ab6d7fbc07)

2. Click the "Collateral" button

<img src="https://2637135070-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4wUNxxjszIH28RfMOV63%2Fuploads%2FXgAJKRn4PYxYOCZ3oN0A%2FScreenshot%202024-05-14%20at%2016.06.25.png?alt=media&#x26;token=d1374f10-a584-4946-95a4-7534bad52d3a" alt="" data-size="original">

3. Sign the transaction

<img src="https://2637135070-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4wUNxxjszIH28RfMOV63%2Fuploads%2FqoUn5TZMrNhJCyjnJg3C%2FScreenshot%202024-05-14%20at%2016.06.31.png?alt=media&#x26;token=36c96510-817c-428b-90e0-c82e86c2ef53" alt="" data-size="original">

</details>