What is Loan-to-Value (LTV)?

Monitor Your Collateral Watch: Monitor Your Collateral · 0:29
Captions available · Read the transcript Video 2 of 3 in the loan management series

LTV represents the ratio of your loan balance to the value of your crypto collateral, expressed as a percentage.

Itโ€™s calculated as:
LTV = Loan Balance รท Collateral Value ร— 100

Example: If your Bitcoin is worth $20,000 and you borrow $10,000, your LTV is 50%.

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