Loan-to-Value (LTV)

Loan-to-Value (LTV) is the ratio of your loan amount to the current market value of your Bitcoin collateral. It is the single most important number to understand when taking a Bitcoin-backed loan.

The formula

LTV = Loan Amount ÷ Collateral Value × 100

If you pledge 1 BTC worth $100,000 and borrow $60,000, your LTV is 60%.

Why LTV matters

Lenders set a maximum LTV at origination (typically 50–80%) and a margin call threshold (typically 75–90%). If Bitcoin's price falls and your LTV rises above the margin call threshold, you must either add collateral or repay part of the loan — or the lender may liquidate your Bitcoin.

Initial vs. maintenance LTV

Your initial LTV is set when the loan is originated. Your maintenance LTV is monitored continuously. As Bitcoin's price changes, your maintenance LTV changes too — even though the dollar amount of your loan stays fixed.

Lower LTV = less risk

A 50% LTV means Bitcoin needs to fall 50% before a margin call is triggered. An 80% LTV means even a 15–20% price decline can trigger a margin call. Conservative borrowers typically target 40–50% LTV.