LTV compares debt with collateral value
Loan-to-value (LTV) is modeled debt divided by the value of pledged collateral, multiplied by 100. With $30,000 debt and one pledged BTC valued at $100,000, LTV is 30%.
Debt is in dollars, pledged collateral is in BTC, and the price assumption converts that BTC into dollars. Reserve BTC is not included until it is actually modeled as pledged collateral.
Three inputs can change the result
- More debt raises LTV if collateral and price stay fixed.
- A lower BTC price raises LTV if debt and pledged BTC stay fixed.
- More pledged BTC lowers LTV if debt and price stay fixed.
This small illustration changes only those inputs. It does not accrue interest or execute a top-up, repayment, or loan.
A threshold is a separate assumption
Your current LTV is not your lender's warning or liquidation threshold. Those thresholds come from the agreement and may depend on valuation and timing rules. The planner lets you inspect chosen assumptions; it cannot guarantee what a lender will do.
Open Overview for the ratio, then Floor Stress and Checkpoints to examine modeled future conditions. Read what a price decline does to LTV or estimate initial borrowing capacity.