LTV is Loan-to-Value ratio, which is calculated by dividing the amount borrowed by the value of collateral, expressed as a percentage.
For example, if you borrow $100 of USDC and the value of your BTC collateral is $1000, your LTV is equal to 10% (100 / 1000 = 10%).
You can keep track of your LTV in real time within the Wirex App. If you see that it is getting too high (e.g., approaching the Warning risk level) you can add more collateral to your existing credit line to reduce the LTV back to a healthy level.
When opening a new line in Wirex Credit, the maximum you can borrow depends on your collateral and the stablecoin you choose.
It is essential to check your LTV regularly as the market rates change. Once your LTV reaches a higher than Danger risk score, your collateral will be liquidated, and the credit line will be closed automatically.
|
Collateral Options |
MAX LTV |
LIQUIDATION |
|
BTC, ETH |
60% (70% NXUSD) |
75% |
|
YFI, MKR, AAVE, UNI, COMP, LINK, 1inch |
55% |
65% |
|
SOL, AVAX, MATIC, DOT, ALGO, NEAR, ADA, TRX, EGLD |
60% |
70% |
|
WXT |
30% |
40% |
|
XRP, XLM, LTC |
50% |
60% |
|
DOGE, SHIB, AXS, APE |
30% |
40% |
You have complete flexibility with Wirex Credit, you can repay the borrowing in full at any time, or add more collateral to reduce the LTV.
