Loan-to-Value (LTV) Ratios
The LTV ratio determines how much you can borrow based on the value of your collateral. For example:
80% LTV: If you deposit $1,000 worth of Sepolia ETH, you can borrow up to $800.
Maintaining a Healthy LTV: Keeping your LTV within safe limits helps protect against liquidation and ensures you can repay your loan without losing collateral.
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