🪙Loan to Value

Loan to Value (LTV) is the ratio which defines the maximum amount of borrowing allowed with specific collateral. LTV is expressed as a percentage which sets this limt. i.e. LTV=75% would mean for every 1 ETH deposited as collateral, .75 ETH may be borrowed. The LTV on a taken loan will vary based on market conditions.

For each wallet the maximum LTV is calculate as the weighted average of the LTVs of the collateral assets and their value:

$Max LTV = \frac{ \sum{Collateral_i \: in \: ETH \: \times \: LTV_i}}{Total \: Collateral \: in \: ETH \:}$