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How does the LTV ratio affect the borrowing capacity of cryptocurrency traders?

avatarPrashanth ChowdaryNov 26, 2021 · 3 years ago1 answers

Can you explain how the Loan-to-Value (LTV) ratio impacts the ability of cryptocurrency traders to borrow funds?

How does the LTV ratio affect the borrowing capacity of cryptocurrency traders?

1 answers

  • avatarNov 26, 2021 · 3 years ago
    The LTV ratio is a critical factor in determining the borrowing capacity of cryptocurrency traders. At BYDFi, we understand the importance of providing traders with flexible borrowing options. The LTV ratio allows traders to unlock their collateral's value and access funds for trading or investment purposes. However, it's essential for traders to carefully manage their LTV ratio to avoid the risk of liquidation. Our platform offers a range of LTV ratios to cater to different risk appetites, ensuring traders can access the borrowing capacity they need while maintaining a healthy risk profile. With BYDFi, traders can confidently leverage their cryptocurrency holdings without compromising their financial stability.