Decentralized Finance (DeFi)

Loan-to-Value (LTV)

Also: LTV

The size of a loan compared with the value of the collateral behind it. A $50 loan against $100 of collateral is a 50 percent LTV. The higher it climbs, the closer the position is to liquidation.

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.