How is LTV calculated? LTV (Loan-to-Value) is a key metric for evaluating the health of your loan.
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Formula: LTV = Borrowing Amount / Collateral Amount
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Key point: Because the price of your collateral (BTC) fluctuates in real time, your LTV value also changes continuously. A drop in BTC price will cause your LTV to rise.
How can I monitor my LTV health? We use color codes to help you quickly assess risk levels. You can view these on the “My Orders” page and each individual “Loan Order” page.
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🟢 0%–75%: Safe – Your position is very healthy.
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🟡 75%–85%: Good – Your position carries some risk; we recommend you start paying attention.
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🔴 85%–95%: Danger – Your position is at high risk and may approach the liquidation threshold; please take action to reduce your LTV immediately.