Loan to Value (LTV)

Notional is an overcollateralized lending protocol. This means that the maximum amount you can borrow is less than the total value of your collateral. Your Loan to Value (LTV) is the value of your loan in USD divided by the value of your collateral in USD.
LTV=loanValue/collateralValueLTV = loanValue / collateralValue
For example, if you borrowed 100 USDC against 200 USDC worth of ETH, your LTV would be 50%.
// Example LTV calculation
loan value = 100 USDC
collateral value = 200 USDC
LTV = 100 / 200 = 0.5


The maximum amount you can borrow against your collateral is called the Max LTV. If the Max LTV was 75%, you could borrow another 50 USDC before you would reach your max borrow capacity.
// User at Max LTV of 75%
loan value = 150 USDC
collateral value = 200 USDC
LTV = 150 / 200 = 0.75
Your Max LTV depends on what assets you're using as collateral, what you're borrowing, and Notional's risk parameters.