HyperLoan L-T-V

Loan to Value Ratio

Each type of collateral has a specific Loan to Value (LTV) ratio. The LTV ratio determines how much a user can borrow against their collateral.

For example, if the LTV ratio for BSEC is 75%, a user can borrow up to 75% of the value of their BSEC supply position. If the collateral value drops, the LTV ratio increases and when this ration reaches a threshold, the borrower risks liquidation.