# Loan-to-value Mystic adjusts loan-to-Value (LTV) ratios per pool/asset in order to meet the different risk profiles of the underlying assets. This customization enables us to feature the best LTVs in every market. This allows users to borrow more against their collateral compared to other platforms, effectively maximizing capital efficiency. ### **Benefits of High LTV** A high LTV ratio means that users can access more liquidity without needing to provide excessive collateral. This is most beneficial for those who want to leverage their investments or need quick access to capital for other opportunities. By offering competitive LTV ratios, Mystic Finance makes its platform more attractive to borrowers, increasing overall liquidity and RWA utility. ### **Risk Management** While high LTV ratios provide significant benefits, they also require robust risk management practices. Mystic Finance employs several mechanisms to mitigate the risks associated with high LTV borrowing, including real-time collateral monitoring and insurance funds to cover potential bad debt on the pools. All LTV ratios are set together with our risk partners. Learn more in [Risk Management](/core-concepts/risk-management.md). --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.mysticfinance.xyz/core-concepts/loan-to-value.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.