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Decentralized Finance (DeFi)

Liquidation Threshold

The LTV at which a loan stops being safe and can be liquidated. It sits above the maximum LTV a protocol lets you borrow at, giving a small cushion.

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General education, not investment, legal or tax advice. Markets and regulation change quickly: where a definition depends on current law or on a recent event, check the latest coverage before relying on it.

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