What is LTV and why does it matter?

LTV stands for Loan-to-Value ratio. It is calculated as:

LTV = Outstanding principal balance / Total collateral value

LTV is the primary indicator of your account health. Since crypto prices fluctuate, your LTV changes in real time, refreshed every 60 seconds. As your collateral value drops, your LTV rises, which can trigger alerts and, if it reaches 75%, automatic partial liquidation of some of your collateral.