Loan-to-Value (LTV) Ratios

The LTV ratio determines how much you can borrow based on the value of your collateral. For example:

  • 80% LTV: If you deposit $1,000 worth of Abstract Sepolia ETH, you can borrow up to $800.

  • Maintaining a Healthy LTV: Keeping your LTV within safe limits helps protect against liquidation and ensures you can repay your loan without losing collateral.

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