How is the collateral-to-principal (CTP) calculated?

Divide the USD value of the underlying collateral by the principal balance of the loan.

The collateral-to-principal (CTP) ratio is the ratio of a loan’s collateral value to the principal amount. This is the inverse of loan-to-value (LTV) for a loan. The formula we use for calculating CTP is:

CTP = (current BTC/USD price × amount of BTC securing loan ) ÷ current principal balance