What is loan-to-value (LTV)?

Loan-to-value compares what you owe with what your collateral is worth. Borrowing $50 against $100 of Bitcoin is an LTV of 50%, and the higher it gets, the closer the loan is to liquidation.

Also called LTV or collateral ratio.

How Rujira sets the limits

Each coin has a collateral ratio. If Bitcoin’s is 70%, every $100 of Bitcoin lets you borrow up to $70. With several coins as collateral, their adjusted values add up, and a loan stays open as long as that adjusted collateral value stays above the debt. If the adjusted LTV goes above 100%, the position starts to get liquidated.

What a public wallet gives away

Anyone who sees your collateral and your debt can calculate your LTV, and from it the price at which your loan gets liquidated.

In Redacted

Borrow from a Redacted private account and the same limits apply, but nobody can tie the loan, its collateral or its liquidation price to your wallet.

Borrow privately →

Related terms

LiquidationA liquidation sells part of a borrower’s collateral to repay their loan when the collateral is no longer worth enough to cover it safely.Money marketA money market lets people lend coins to earn interest and lets others borrow them against collateral, with rates that rise as more of a coin is borrowed.Price oracleA price oracle brings market prices onto a blockchain so that smart contracts can use them, for example to value collateral and decide when a loan gets liquidated.

Sources: RUJI Money Market, Rujira documentation

Updated October 7, 2026. All terms