The LTV formula is:
LTV = (Size of Loan) / (Collateral Value)
To determine your LTV, you simply divide your loan amount by the value of the collateral asset. For instance, to get €100,000 depositing 55 BTC, you need to determine your crypto value first. At current rates, 1 BTC ≈ $3,500, it means that the market value of 55 BTC is about $192,500.
Now enter 100,000 on your calculator and divide it by 192,500. You’ll get 0,52 or 52%. This is your LTV ratio.
If you want to count the amount of crypto you can borrow against your crypto, you should reverse the formula:
(Size of Loan) = LTV * (Collateral Value)
For instance, you’ve got 57 BTC, 1 BTC ≈ $3,500, so all your crypto market value is $200,000. Maximum LTV available on the CoinLoan platform is 70%. So you’re to multiply 200,000 by 0,6 equals 120,000. You’re able to borrow up to $120,000.