# 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. $$ LTV = loanValue / collateralValue $$ 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 ``` ### Max LTV 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.notional.finance/notional-v3/borrower-resources/loan-to-value-ltv.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.