Loan-to-Value Ratio(LTV)
The ratio of borrowed amount to collateral value, determining how much you can borrow against your deposits.
In-Depth Explanation
LTV = Loan Amount / Collateral Value. A 75% max LTV means you can borrow up to $75 against $100 of collateral. Different assets have different max LTVs based on risk—stablecoins might allow 90% while volatile assets allow 50%. Higher LTV = higher liquidation risk.
Related Terms
Health Factor
A metric showing how close a lending position is to liquidation, where below 1 means liquidatable.
Collateral
Assets deposited as security for a loan, which can be seized if the borrower fails to repay.
Liquidation
Forced closure of an undercollateralized position, typically with a penalty to the borrower.
More in Trading & Markets
View all →Slippage
The difference between the expected price of a trade and the actual executed price.
Maximal Extractable Value
MEVValue that can be extracted by reordering, inserting, or censoring transactions within a block.
Sandwich Attack
An MEV extraction technique where an attacker places transactions before and after a victim's trade to profit from the price impact.
Frontrunning
Placing a transaction ahead of a known pending transaction to profit from the anticipated price movement.