Lending
LTV Monitoring & Liquidation Thresholds
5 min read 876 views v1Updated 2026-06-01
LTV Monitoring
Loan-to-Value (LTV) ratio is the most important metric for crypto-backed loans. It measures how much you owe relative to your collateral value.
LTV Formula
LTV = (Loan Amount / Collateral Value) x 100%
Example: You borrow $1,000 USDT against $2,000 worth of ETH collateral. Your LTV is 50%.
Monitoring Thresholds
| LTV Range | Status | Action |
|-----------|--------|--------|
| Below 80% | Healthy | No action needed |
| 80% | Warning | Consider adding collateral |
| 90% | Urgent | Add collateral or repay immediately |
| 95% | Liquidation | Collateral may be sold automatically |