How does the maximum loan-to-value ratio affect borrowing for digital assets?

1 answers

• Nov 28, 2021 · 3 years ago
  The maximum loan-to-value ratio is an important factor to consider when borrowing against digital assets. Different lenders may have different ratios, but generally, a higher ratio means you can borrow a larger percentage of your digital assets' value. However, it's important to note that a higher loan-to-value ratio also means a higher risk for the lender. If the value of your digital assets drops significantly, you may be at risk of a margin call or even losing your assets. Therefore, it's crucial to carefully assess your risk tolerance and the market conditions before borrowing against your digital assets. Additionally, it's advisable to compare loan-to-value ratios offered by different lenders to find the best terms and conditions for your borrowing needs.
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