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How to Use the Calculator
- Collateral quantity: enter how many units of one asset secure the loan, such as 2 BTC.
- Price per unit: enter that asset’s USD price using the price source your lender uses.
- Outstanding debt: include interest and charges already added to the amount you owe.
- Liquidation LTV: enter the lender’s liquidation threshold for this collateral. It may differ from the maximum LTV allowed when opening the loan.
The starting values are an example, not a live price quote or recommended loan. Results update as you change the inputs.
How LTV and Liquidation Price Are Calculated
Collateral value equals quantity multiplied by price. LTV equals outstanding debt divided by collateral value, multiplied by 100.
For one collateral asset, the estimated liquidation price equals debt divided by collateral quantity, divided again by the liquidation threshold expressed as a decimal.
For example, 2 units priced at $100,000 secure $50,000 of debt at an LTV of 25%. With an 85% liquidation threshold, the estimated liquidation price is $29,411.76 per unit. That is a 70.59% decline from the entered price, assuming the debt and collateral quantity do not change.
What the Estimate Leaves Out
Future interest increases debt and moves the liquidation price. A lender may also use an index or oracle price that differs from the market price you enter. Liquidation penalties, changing thresholds, debt-token price changes and portfolios with several collateral assets are not modelled here.
Use the lender’s account dashboard to monitor the actual position. If the result is already at or above the entered threshold, the calculator reports that directly; it does not show remaining room for a price decline.
For the borrowing process, repayment options and risks, read our guide to crypto loans.