In crypto lending, risk does not come from borrowing itself. It comes from how borrowing interacts with market volatility. One metric sits at the center of that balance: Loan-to-Value, or LTV. Understanding how LTV works is essential if you want to use crypto credit without exposing your assets to unnecessary liquidation risk.
Clapp.Finance builds its credit system around this principle, using LTV not only as a borrowing limit, but as a real-time risk management tool.
What LTV Means in Practice
Loan-to-Value measures the ratio between the amount you borrow and the value of the crypto you lock as collateral. If you deposit $10,000 worth of crypto and borrow $5,000, your LTV is 50%. The number moves dynamically as market prices change.
This ratio matters because crypto prices can shift quickly. When the value of your collateral drops, your LTV rises automatically. When prices move in your favor, LTV declines and your position becomes safer.
Rather than treating LTV as a stat
We współpracy z: https://cryptodaily.co.uk/2025/12/loan-to-value-ltv-explained-how-clappfinance-protects-your-collateral
