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2026-02-15 07:24:20 UTC
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jakewoodhouse on Nostr: LTV = loan to value Ie you put down 1 BTC @ 100,000$ usd value, you can get 50% LTV, ...

LTV = loan to value

Ie you put down 1 BTC @ 100,000$ usd value, you can get 50% LTV, so you get a 50,000$ usd loan

These debt deals had margin then liquidation levels

So as the price drops, the LTV goes 55%, 60%, 65% etc

Until the lender requires the borrower to either provide more Bitcoin, or start taking the original collateral