CollateralLiquidationBorrowingRisk
What is LTV in crypto lending? The warning-level arithmetic
LTV is the loan over the collateral's value. Two lenders' own levels, worked into the price fall each one allows and what a partial liquidation sells.
By Staff, Lend Ledger
What is LTV in crypto lending? Loan-to-value is the loan divided by the current value of the crypto pledged against it, as a percentage. The loan is fixed and the collateral price is not: a 1,000 EUR loan against 2,000 EUR of bitcoin is 50% LTV, and the same loan against 1,250 EUR is 80%.
This desk read SpectroCoin’s LTV help page and three SALT Lending pages on 19 October 2026. The inverse, the collateral ratio, is collateral over loan: 50% LTV is 200%.
What LTV levels does a crypto lender set?
SpectroCoin warns at 70%, for loans issued below 75% LTV, and at 80%. Unanswered warnings mean part of the collateral is liquidated to bring LTV to 75%. The page does not state the trigger level for that sale, or any fee.
SALT’s rate card, dated 14 September 2026, lists 30%, 50% and 70% tiers at 7.49% to 10.50% APR, 70% on one-year terms only. Its thresholds page puts Stabilization at 90.91% LTV, converting collateral to USDC when enabled; SALT says options are subject to change. SALT’s 2019 explainer, still ranking for this query, lists 30%, 40% and 50%.
How far can collateral fall before each level?
Desk arithmetic: fall = 1 minus start LTV divided by the level.
| Start LTV | Level reached | Collateral ratio there | Collateral fall |
|---|---|---|---|
| 50% (SpectroCoin) | 70% warning | 142.9% | 28.6% |
| 50% (SpectroCoin) | 80% warning | 125% | 37.5% |
| 30% (SALT) | 90.91% Stabilization | 110% | 67.0% |
| 50% (SALT) | 90.91% Stabilization | 110% | 45.0% |
| 70% (SALT) | 90.91% Stabilization | 110% | 23.0% |
What does a partial liquidation back to 75% sell?
If a sale happens at an LTV of L, with proceeds repaying debt one-for-one and fees excluded, it sells 4D minus 3C, where D is the debt and C the collateral’s value, or (4L minus 3) of the collateral. At 80% that is 250 EUR of 1,250 EUR, a fifth; at 85%, 40%; at 90%, 60%. Each five points past 80% costs another fifth.
Thresholds across bitcoin lenders are compared here; response windows here; the sale itself is explained here.
Frequently asked questions
How is LTV calculated?
Divide the loan by the current market value of the collateral and express it as a percentage. SpectroCoin’s example: a 1,000 EUR loan against 0.2 BTC worth 2,000 EUR is 50%. The loan stays fixed while the collateral price moves, so LTV rises when the price falls.
How do LTV warnings work?
On SpectroCoin’s page, warnings arrive by email and on the platform when LTV reaches 70%, for loans issued below 75% LTV, and at 80%. If they are not dealt with, part of the collateral is liquidated to bring LTV to 75%. The page states no trigger level for that sale.
How do you maintain a crypto loan’s LTV ratio?
Repay part of the loan or add collateral. In SpectroCoin’s example, a loan at 80% returns to 50% either by repaying 375 EUR, leaving 625 EUR against 1,250 EUR, or by depositing 0.12 BTC worth 750 EUR, restoring 2,000 EUR of collateral against the 1,000 EUR loan.
Nothing here calls SpectroCoin or SALT regulated anywhere; no register was read. Lenders can change these levels and the loan agreement governs. Borrowing against crypto risks the whole collateral; nothing here is financial advice.