Loan-to-value, or LTV, is the single most important number in a crypto-backed loan. It tells you how big your loan is compared with the crypto securing it.
The formula
LTV = loan amount ÷ collateral value × 100
If you pledge $50,000 of Bitcoin and borrow $25,000, your LTV is 50%. Rearranged, the same formula tells you how much collateral you need: to borrow $10,000 at 50% LTV, you pledge $20,000 of crypto.
Quick examples
| Collateral value | LTV | Loan amount |
|---|---|---|
| $20,000 | 50% | $10,000 |
| $50,000 | 40% | $20,000 |
| $100,000 | 70% | $70,000 |
Why LTV matters
With a standard crypto loan, your LTV moves with the market. The loan stays the same, but if your collateral's value falls, your LTV rises. For example, a 50% LTV loan becomes 71% if the price drops by 30%. Most lenders set a margin-call level and a liquidation level, so a higher starting LTV leaves less room before trouble.
With a loan that has no margin calls, a rising LTV doesn't trigger anything: your loan and collateral stay as agreed. LTV then simply decides how much you can borrow against the coins you pledge.
Choosing your LTV
- Lower LTV: you borrow less against the same coins. With standard loans, it gives more cushion against price drops.
- Higher LTV: you get more cash from the same coins, but you pledge coins that may be worth much more than the loan if prices rise. Think about whether you'd want them back.
- Borrow what you need. Interest is charged on the loan amount, so a bigger loan costs more each month.
Helio personal loans go up to 70% LTV. See all terms on our rates & fees page.
Work out your LTV
Move the sliders in our loan calculator to see your loan amount and monthly cost at any LTV.
This article is general information, not financial, tax or legal advice.