A discount applied to collateral value to protect the lender against volatility and liquidation costs.

What LTV is considered conservative?

Starting at 35–50% LTV usually leaves enough buffer to avoid margin calls during routine volatility.

What fees affect the all‑in APR?

Origination, brokerage, custody/storage, insurance, and any prepayment or extension fees.

Updated 2025-08-23 · Author: Aydın Aslan

Key inputs: valuation method, haircut, rate, term, and fees.

Outputs to watch: total interest, effective APR, and break‑even collateral value under stress.