# Loan To Value

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

The [health factor](/meltlabs-lending-protocol/protocol/health-factor.md) 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.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://meltlabs.gitbook.io/meltlabs-lending-protocol/protocol/loan-to-value.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.