Collateral-to-Principal (CTP)

Collateral-to-principal (CTP) is the ratio of the market value of your pledged Bitcoin to the size of your loan principal. It is the inverse way of expressing loan-to-value (LTV): where LTV asks "what fraction of my collateral am I borrowing," CTP asks "how many times my loan is my collateral worth."

The relationship to LTV

CTP = Collateral Value ÷ Loan Principal × 100. A 200% CTP means your Bitcoin is worth twice your loan, the same position as a 50% LTV. A 150% CTP equals roughly a 67% LTV. Higher CTP means more cushion before a margin call.

Why some lenders use CTP

Unchained quotes its loans in CTP terms, with a 200% collateral-to-principal requirement as its standard. Framing it as CTP emphasizes over-collateralization, how much extra Bitcoin backs the loan, rather than how much you are borrowing. Both numbers describe the same position.

Quick conversion

To convert an LTV to CTP, divide 100 by the LTV and multiply by 100: a 40% LTV is a 250% CTP; an 80% LTV is a 125% CTP. If a lender quotes CTP, you can always restate it as LTV to compare against other lenders on the same basis.