But handing over keys still affects those assets, yes? At the very least it leaves the borrower vulnerable to loss, doesn’t it?

I may have mentioned it, but if I didn’t, I have more value staked in HE than in HP. If I borrow based solely on HP I’m over collateralizing since my keys access HE. This seems problematic to me, though admittedly I have little to no clue. 😊