LTV Policy (USDT vs ETH)

LTV Policy

Valuation

0FX collateral is valued in USD using a conservative mix of oracle/TWAP and live DEX quotes. A safety discount may apply when liquidity is thin or volatility spikes.

Bands (target → soft cap → liquidation)

USDT / USDC / BTC (WBTC) Loans (Hedged):

• Origination target: 35% LTV

• Soft cap / action window: 40% LTV (24h to add collateral or repay)

• Liquidation: Dynamic, based on cumulative price-impact model; typically >40% once buffers are exhausted.

ETH Loans (No USD/BTC Hedge):

• Origination target: 70% LTV

• Soft cap / action window: 80% LTV

• Liquidation: Dynamic; typically >80% under impact constraints.

Dynamic Risk (Price-Impact Aware)

Thresholds adapt to the aggregate size of all open loans vs. market depth. If cumulative liquidation would exceed the system impact cap (see System Caps), new origination pauses or LTVs are throttled.

Auto-roll (Default)

We strive to keep your position inside the target band; if a threshold is hit you get an alert and 24h to act. You can repay anytime; on full settlement, collateral is released.

Example

Deposit $10,000 in 0FX.

• USDT loan at 35% LTV: Borrow $3,500 (hedged). Alert if LTV approaches 40%.

• ETH loan at 70% LTV: Borrow $7,000 in ETH; alert if near 80%.