> For the complete documentation index, see [llms.txt](https://eigenphi-1.gitbook.io/classroom/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://eigenphi-1.gitbook.io/classroom/glossary/ltv-liquidation.md).

# LTV, Liquidation

The Loan to Value (LTV) ratio defines the maximum amount of currency that can be borrowed with a specific collateral. It’s expressed in percentageS. E.g., at LTV=75%, for every 1 ETH worth of collateral, borrowers will be able to borrow 0.75 ETH worth of the corresponding currency. Once a loan is taken, the LTV evolves with market conditions.