Collateralized Debt Position (CDP)

What is a Collateralized Debt Position (CDP)?
The QuickCash Collateralized Debt Position (CDP) is a smart contract which runs on the Ethereum blockchain. It is a core component of the QC Stablecoin System whose purpose is to create QC in exchange for collateral which it then holds in escrow until the borrowed QC is returned. CDPs alter the total supply of outstanding QC, creating QC when new assets are leveraged and destroying existing QC when it is repaid to the position. This cycle of controlled minting and burning allows the contract to account for the total supply of the stablecoin, thus proving that the portfolio of backing collateral can always guarantee the value of circulating QC.
What is the best way to lower my risk of liquidation?
Where is the digital asset pledged by the users?