Whai is LTV?

Whai is LTV?

Loan-to-value, or LTV, is set at 50% or 70%. That means that we give you 50% or 70% of the collateral value as a loan. This allows us to minimize your risk and protects you from severe volatility in the price of your collateral.

How is the collateral calculated?

If your collateral is 1 Bitcoin and it costs $60,000, you will get $30,000 in Tether. Why only 50%? At the 50% LTV, we guarantee we don’t sell your collateral before its price drops by 50%. If our LTV were 90%, we would give you a $54k loan for your $60k, but if the Bitcoin price dropped to $54k, we’d sell it. This is not safe. Low LTV secures your collateral from liquidation.

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