A more thorough explanation:

Definition: In Scots law, wadset refers to a mortgage or a pledge/pawn. It can also be referred to as fiducia in Roman law.

Examples:

• John took out a wadset on his house to secure a loan from the bank.
• Mary gave her necklace as a wadset to the pawn shop in exchange for some quick cash.

The first example illustrates the use of wadset as a mortgage, where John uses his house as collateral for a loan. The second example illustrates the use of wadset as a pledge or pawn, where Mary gives her necklace as collateral for a loan from the pawn shop.