MeltLabs Lending Protocol
  • Introduction to MeltLabs
  • Guides
    • Provide Liquidity
    • Deposit/Withdraw Collateral
    • Get a Loan
  • Protocol
    • Health Factor
    • Loan To Value
    • Liquidation
    • Risks
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  1. Protocol

Loan To Value

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Last updated 3 years ago

Loan To Value (LTV) is a number that indicates how much you can borrow based on your collateral.

The is calculated on the basis of the LTV.

Here is a simple example to understand LTV:

-You deposit a $5,000 NFT

-If the LTV is 60% you can borrow up to 60% of the value of your NFT, so in this case $3000

-If the LTV exceeds 80% (and therefore the value of the NFT falls) you risk being liquidated.

The LTV must reach at least 80% to be at liquidation risk, this 80% is called the liquidation threshold.

health factor