Loan-to-value or LTV is the percentage of the loan amount in relation to the market value of the cryptocurrency used as collateral.
For example:
Loan amount: $50,000 USD
Crypto collateral value: $100,000 USD
LTV (%) = ($50,000/$100,000)*100% = 50%
If the value of the collateral drops, for example to $60,000 then the LTV would increase to ($50,000/$60,000)*100% = 83.3%
If the value of the collateral increases, for example, to $150,000, then the LTV would decrease to ($50,000/$150,000)*100% = 33.3%