> For the complete documentation index, see [llms.txt](https://bpeg.gitbook.io/bpegd/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bpeg.gitbook.io/bpegd/about-the-protocol/lending-mechanics/loan-to-value-ratios-ltv.md).

# Loan-to-Value Ratios (LTV)

Intrinsically all debt positions allow **65%** of the collateral value to be drawn and a **liquidation event** will occur if the debt/collateral ratio is **66%** or greater. This is to ensure the protection and balance of assets within the pool. Ensure you consistently check your obligations as a lender, NFT pricing in many instances can prove to be exceedingly volatile. 

**Position Example**: if an NFT is valued at 0.5 BTC a user can draw up to 0.325 BTC worth of available assets in the BPEG'd Lockers. 

If the NFT collateral value drops slightly or the user draws more debt that changes the debt/collateral ratio to equal or exceeds 66% he or she will be liquidated with funds being returned to the locker.


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