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What is loan-to-value (LTV)?

Used by lenders, loan-to-value (LTV) is the assessment ratio of risk involved while approving a loan. Simply, it is the ratio of the loan's value to the value of the collateral. What Is Loan-to-value (LTV)? LTV is the ratio of the loan's value to the value of collateral.

What is LTV & how does it work?

What is LTV? LTV is the ratio of your loan to the value of your Collateral. When you borrow a loan, we calculate your loan amount or required Collateral based on the following formula. When a loan becomes active, we monitor your loan’s LTV based on the following formula.

How do you value crypto assets for LTV?

Crypto.com, 20%. Based on the price data from these exchanges, we determine the composite index price and use this to value your crypto assets for LTV calculation. USDT is regarded as the ‘Home Currency’ for all crypto asset valuations. As a fallback, these actions will be used to determine a fair, weighted price:

How do we monitor my loan's LTV?

When a loan becomes active, we monitor your loan’s LTV based on the following formula. where, Outstanding Balance = Outstanding Loan Principal + Outstanding Loan Interest A composite index price is used to calculate the LTV every 5 seconds, which incorporates price data from the following major exchanges with the corresponding weightage:

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