LTV (Loan To Value)

A ratio that is expressed as a percentage, which is calculated by dividing an amount of money that is borrowed via a loan, by the value of collateral which was pledged for a repayment of the aforementioned loan. This metric allows crypto lenders to determine whether or not a loan should be approved to a borrower, or what terms and rates could be offered. A high LTV percentage, often translates to a loan that is too high risk, low reward to pursue for crypto lenders.