All Collections Visa Card
Spending Power (Canada)
Collateral Health and Loan-to-Value (LTV) percentage
Collateral Health and Loan-to-Value (LTV) percentage

In this article, more insight is provided on how to use Collateral Health and Loan-to-Value (LTV) percentage

Hrisi avatar
Written by Hrisi
Updated over a week ago

What is the Loan-to-Value (LTV) percentage?

Loan-to-Value (LTV) percentage refers to the ratio between the Outstanding Balance from your Spending Limit, and the market value of the crypto that’s held as collateral.

LTV = Outstanding Balance / Market Value of Collateral

The percentage is used to monitor Collateral Health.

What is Collateral Health?

The market price of collateral continually fluctuates, so the LTV percentage will be constantly changing too. Therefore, as the market price goes down, the collateral may no longer be sufficient to maintain a healthy LTV percentage to cover the amount owed.

Collateral Health is the indicator that monitors the LTV percentage and triggers certain actions, so you can maintain a healthy LTV percentage.

The different Collateral Health thresholds are as follows:

LTV Percentage Range

Collateral Health

LTV < 60%


60 ≤ LTV < 70%


70 ≤ LTV < 80%


80 ≤ LTV< 90%


LTV ≥ 90%


If your Collateral Health reaches the Poor or Critical threshold, alerts will be triggered and you will be asked to increase the collateral or pay back your Outstanding Balance. When your LTV reaches 90%, your collateral will be liquidated immediately.

How do I change my collateral selection?

Go to the Card tab and toggle off Spending Power to disable this service, and pay back your Outstanding Balance, if applicable.

Then, toggle on Spending Power again to select the new crypto you want to use as collateral.

How do I improve my LTV Percentage?

Repay a portion or all of the Outstanding Balance via the Spending Power page or add more collateral.

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