Optimal LTV Management on Binance Earn
The Loan-to-Value (LTV) ratio is a crucial element in managing your crypto loans. Here's how to master it on Binance Earn.
- Understanding LTV: LTV represents the loan amount in relation to the value of the collateral. Higher LTV means more risk.
- Maintain a Low LTV: To avoid liquidation, it is advisable to maintain a low LTV. This gives you a margin in the event of market fluctuations, we can manage the LTV as low as possible by repaying the debt, therefore freeing up collateral which will be added again to reduce the LTV even further.
- Active Surveillance: Keep an eye on the market. If the value of your collateral drops, deposit more funds or repay part of the loan to maintain a healthy LTV.
- Use Alerts: Set up alerts to be notified when your LTV approaches the critical threshold
Careful management of LTV allows you to get the most out of Binance Earn while minimizing risk.
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Note
LTV is dynamic and can change with market movements. Active management is the key to protecting your assets.
