> For the complete documentation index, see [llms.txt](https://docs.vespr.xyz/vespr/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vespr.xyz/vespr/user-guide/the-basics/setting-collateral.md).

# Setting Collateral

Cardano dApps, specifically dApps utilizing **`PlutusV1`** smart contracts, require wallets to dedicate a small amount of ADA as "collateral" in order to interact with them. In other words, in order to use these kinds of dApps, the user must first "set collateral" for their wallet. 

{% hint style="info" %}
Collateral is only a pre-requisite for legacy dApps that use**`PlutusV1`**smart contracts. DApps that utilize collateral return do not require collateral. 
{% endhint %}

The process of setting collateral necessitates that you send a sum of `5 ADA` back to your own wallet. This can sometimes be somewhat of an inconvenient process.

With VESPR, we've condensed the collateral setting process into just a few taps: 

1. Open the VESPR app and head to the **"Discover"** page by tapping on the right-most tab on the bottom menu.

<figure><img src="/files/uPkDFlsXADMssrPsjHJB" alt=""><figcaption></figcaption></figure>

2. Tap the 3 dots on the top right

<figure><img src="/files/msoQZF86Jk6fY0qLp1KI" alt="" width="188"><figcaption></figcaption></figure>

3. Tap on **"Legacy dApp compatibility"**

<figure><img src="/files/sC5dGz3ZapBaGTVw1Syb" alt="" width="375"><figcaption></figcaption></figure>

4. A pop-up will appear asking you to **Set collateral.** Tapping this will confirm a transaction to set your collateral (it will just send 5 ADA back to your wallet for you).

<div><figure><img src="/files/OdQKfwyXdNeev3hNXUii" alt=""><figcaption></figcaption></figure> <figure><img src="/files/Vd4SP791dmkfEwqywNlo" alt=""><figcaption></figcaption></figure> <figure><img src="/files/BrzsWDrfU96kz0hyrLUe" alt=""><figcaption></figcaption></figure></div>

5. Once the transaction is submitted, tap "Dismiss" to dismiss the pop-up.&#x20;
6. After completing the steps, wait for a few minutes before attempting again smart contract operations requiring collateral.

{% hint style="success" %}
You must wait till this transaction is fully processed by the blockchain before you can make any transactions with legacy dApps.
{% endhint %}


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