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How does the CTP ratio impact my loan?

Prevent CTP violations by keeping your CTP ratio above 200%.

The collateral-to-principal ratio (CTP)

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 for CTP is:

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

Lower CTP can result in a CTP violation

For loans where the collateral-to-principal ratio is less than 150%, CTP violations are issued. We recommend that loan clients review our CTP violation process.

Learn: Read more in our Ultimate guide to bitcoin-backed loans.