Collateral Ratio Calculator
Calculate loan safety and liquidation risk
Loan Details
Current market value of your collateral
Amount you borrowed or want to borrow
Protocol's liquidation threshold (e.g., Aave 150%, MakerDAO 150%, Liquity 110%)
Collateral Management Scenarios
Safe Conservative Position
Deposit $20k ETH, borrow $8k USDC. Ratio: 250%. LTV: 40%. Min required: 150%. Buffer: 100%. ETH can drop 40% before liquidation. Sleep well at night. Best for long-term holds.
Risky Leverage Play
$15k collateral, $12k loan. Ratio: 125%. Below 150% minimum. Already in liquidation zone. Need $6k more collateral to reach 150%. Or repay $4.5k loan. High risk, monitor hourly.
Optimal Capital Efficiency
$30k collateral, $15k borrowed. Ratio: 200%. LTV: 50%. Balanced between safety and capital efficiency. Can borrow $5k more before hitting 150% danger zone. Good for active traders.
Emergency Liquidation Avoidance
ETH dropped 30%. Your $25k collateral now $17.5k. $10k loan. Ratio: 175%. Still safe but close to 150% threshold. Add $2.5k collateral or repay $1.7k to restore 200% buffer.
Stablecoin Overcollateralization
Mint $10k DAI with $15k ETH on MakerDAO. 150% ratio exactly at minimum. Risky. Better: use $20k ETH for 200% ratio. Costs more capital but avoids $1,300 liquidation penalty if ETH dips.
Bull Market Leverage Increase
ETH pumped 50%. Your $20k collateral now $30k. $10k loan unchanged. Ratio jumped from 200% to 300%. Can safely borrow $5k more and still maintain 200% ratio. Free leverage from price appreciation.
Frequently Asked Questions
What is collateral ratio?
Collateral Value / Loan × 100%. $15k collateral, $10k loan = 150%. Higher = safer.
Safe ratio level?
200%+ is safe. 150% risky. Below minimum (110-150%) liquidates. Keep 50% buffer above minimum.
Ratio vs LTV?
Inverses. 150% ratio = 66.7% LTV. 200% = 50% LTV. Lower LTV safer. Higher ratio safer.
What triggers liquidation?
Ratio drops below protocol minimum. Collateral price falls or loan value increases. Liquidators sell your collateral with 5-15% penalty.
How to avoid liquidation?
Add more collateral. Repay part of loan. Keep ratio 200%+. Set price alerts. Monitor daily during volatility.
Different minimums?
Varies by protocol and asset. Liquity: 110%. Aave/Maker: 110-150%. Compound: 133%. Check protocol docs.
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