What Is the Loan-to-Value (LTV) Ratio?

What Is the Loan-to-Value (LTV) Ratio?

The Loan-to-Value (LTV) ratio refers to the percentage(%) of the value of your collateral you will receive in a different asset. In the case of Nebeus, when you take out a loan you will use your crypto as collateral and receive cash. The higher the loan-to-value ratio, the bigger the portion of the cash you will receive.

  1. If you have $10,000 worth of BTC and apply for a cash loan with an 80% LTV, you will receive $8,000 cash. ($8,000=$10,000*.8)
  2. If you have $10,000 worth of BTC and apply for a cash loan with an 70% LTV, you will receive $7,000 cash. ($7,000=$10,000*.7)

Loan Amount = Collateral value * LTV%

Since your crypto is the collateral for the loan, the loan-to-value ratio is a measure of risk used by Nebeus. Different loan programs are viewed to have different risk factors, and therefore, have different maximum loan-to-value ratios.

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