Kaleido
  • Introduction
    • Overview
    • Core Features
    • Supported Assets
    • Long-term Goals
  • Getting Started
    • Getting Started
    • Platform Overview
      • How to Join Kaleido Tesnet
      • Marketplace Navigation
  • Core Terms
    • Loan-to-Value (LTV) Ratio
    • Ai Agents powered Health Factor (HF)
    • Liquidation Threshold:
  • Kalaido Mining System Documentation
    • Overview
    • Mining Rate Calculation Factors
    • State Management (detail)
    • Referral System
  • Lending on Kaleido
    • Creating a Lending Pool
    • Setting Lending Terms
    • Managing Lending Pools
  • Borrowing on Kaleido
    • Creating a Borrow Order
      • Depositing Collateral
    • Loan-to-Value (LTV) Ratios
      • Health Factor
    • Repayment Process
  • Flexible Lending Pools
    • Pool Flexibility
    • Borrower Allocation Percentages
    • Benefits of Flexible Pools
  • Architecture Diagrams
    • Borrowing and Lending Process
    • Health Factor and Liquidation
    • Collateral Management Flow
  • Frequently Asked Questions (FAQ)
    • Lending-related Questions
    • Borrowing-related Questions
    • Platform Fees and Policies
  • Contact and Support
    • X(Twitter)
    • Discord
    • Website
    • Dapp
  • Roadmap
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  1. Core Terms

Loan-to-Value (LTV) Ratio

The core formula used in the protocol is the Loan-to-Value (LTV) ratio. The LTV ratio determines how much a borrower can borrow against their collateral. In this protocol, the LTV is capped at 80%.

LTV Formula:

LTV = Loan Amount / (Total Collateral Value * 80)

  • Loan Amount is the amount borrowed.

  • Total Collateral Value is the sum of the values of the assets deposited as collateral.

For example, if a borrower deposits $10,000 worth of ETH and DAI, they can borrow up to $8,000 (80% of $10,000).

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Last updated 5 months ago