Glossary

Loan-to-Value

Loan-to-value is the ratio of borrowed amount to posted collateral.

Borrowed amount versus collateral

Category: On-Chain Credit

Plain-English meaning

Loan-to-Value is used here to describe borrowed amount versus collateral. In the daily board, the word is grouped by the role it performs rather than by spelling or market popularity.

You may encounter it in a product interface, technical document, risk report, policy paper, or market dashboard. The term is included for recognition and comparison, not as a product recommendation.

Why it belongs with On-Chain Credit

These words describe how collateral, leverage limits, and liquidation rules work in lending systems.

When solving the puzzle, compare the job this term performs with nearby cards. A correct group usually shares a function, risk type, workflow, or market structure rather than simply sharing similar wording.

Where you might see it

You might encounter this term while reading educational explainers, product documentation, risk disclosures, market dashboards, or beginner guides. Always separate vocabulary learning from financial decision-making.

Educational vocabulary only. This definition does not provide investment, tax, legal, product, or trading advice.