If you would like to calculate the loan-to-value ratio (LTV) by hand, the formula can be found
LTV = Loan Balance* ($) ÷ Value of Collateral ($)
*Loan Balance consists of the borrowed amount PLUS the origination fee, where applicable. Additionally, the amount of collateral required at the time of loan origination is calculated on the Loan Balance. This allows your LTV to start at the level you choose once the origination fee is assessed.
As an example, a loan with a balance of $10,200.00 (Borrowed Amount: $10,000.00; Origination
Fee: $200.00) that is collateralized by $20,400.00 worth of crypto would have the following LTV:
10,200 ÷ 20,400 = 0.5 or 50%
We have performed extensive risk modeling and determined that the loan-to-value ratios
currently offered are sufficiently conservative and will aid in limiting the number of unexpected
trigger events, and will provide our valued clients with sufficient time to react in the event of
Structuring our loan book on the loan-to-value model ultimately protects our client base and
Market volatility can result in active loans being margin called. To learn more about our margin call policy please refer to THIS article.