It’s a common thing in asset-backed lending to secure your loan with higher-value collateral (overcollateralization). A ratio between the amount of your loan and the market value of your collateral is a Loan-to-Value ratio (LTV).
Choosing LTV ratio as a borrower, you determine your own risk first of all. Creating a Loan Request (Borrowing Application), you can set up an LTV ratio in the range from 5% to 60%. Lower LTV means you have a safety bag. In case of a market fall, your crypto is not likely to be liquidated to secure a lender’s investment. Higher LTV means that you will have to act fast in case of an extraordinary market situation. Good news is that CoinLoan won’t give you a chance to miss out on this.
Learn how to calculate your LTV here.