The LTV ratio represents the percentage of the value of your collateral you may borrow against. It is calculated as a loan's ratio to the collateral's value. In simpler words, it is the percentage from the deposit you make as collateral that you can borrow.
Let’s take a concrete example in the EQIFi ecosystem:
If you want to take a Loan on the EQIFi platform, you must make a deposit first. For example, let’s say that you deposit 100,000 $EQX, which you will then use as collateral for your Loan. At a price of 0.10$ per EQX, the deposit adds up to an equivalent amount in USD of 10,000$. The base LTV ratio that we offer is 50%. This means that you can loan up to 5,000 USD in any crypto of your choice, be it EQX, ETH, or any of the others that we support (check out the platform to see our up-to-date list), and use the deposited $EQX as collateral.
Furthermore, if you stake $EQX and move up the Staking Tiers, you can increase that LTV ratio, get an increased rate on your Deposit and a decreased one on your Loan. For more information about this, please visit https://eqifi.zendesk.com/hc/en-gb/articles/4404781810577-Staking-Tier-benefits-for-EQIFi-users.