How does LTV affect borrowing in the digital currency industry?

1 answers

• Kadir TopcuMar 15, 2025 · 3 months ago
  In the digital currency industry, the Loan-to-Value (LTV) ratio has a significant impact on borrowing. Lenders use the LTV ratio to determine the maximum loan amount they are willing to offer based on the value of the borrower's collateral. A higher LTV ratio allows borrowers to access more funds, but it also increases the risk for lenders. To manage this risk, lenders may require borrowers to provide additional collateral or charge higher interest rates for loans with higher LTV ratios. It is important for borrowers to understand the implications of the LTV ratio and carefully consider their borrowing options in the digital currency industry.
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