# LTV Boost

LTV boosts allows users to increase the [LTV](/jpegd-dao/about-the-jpegd-protocol/lending-mechanics/loan-to-value-ratios-and-liquidation-thresholds.md) of individual positions by up to **10%** above the Base LTV of the selected collection.

To enable the LTV boost, $JPGD tokens need to be locked on a per-position basis as illustrated in the [example](#id-84d7) below. The amount of boost can be chosen by the user, ranging from 0.01% to 10% extra LTV. Once activated, the boost effects will remain active until the user requests the [withdrawal](#withdrawal) of the associated $JPGD.

<figure><img src="/files/6AgYd7fGdw0R0a0gyCuQ" alt=""><figcaption><p>Unlock up to 10% extra LTV by locking $JPGD</p></figcaption></figure>

### Cost <a href="#id-84d7" id="id-84d7"></a>

To estimate out how much JPGD you need to lock, follow these steps:

1. Calculate the difference between the boosted credit limit and the base credit limit.
2. Multiply this difference by the lock rate.
3. Then, divide by the price of JPGD in Ethereum (ETH).

This formula helps determine the amount of JPGD tokens needed to unlock a 10% boost in loan-to-value (LTV). The cost is 20% of the extra value provided by the increased credit limit, payable in JPGD tokens.

So, to summarize, the formula for the amount of JPGD to lock is:

`AmountOfJPGDToLock = (boostedCreditLimit - baseCreditLimit) * lockRate / jpgdPriceInEth`

#### Example:

100 ETH floor collection\
35 ETH = max borrow with no[ JPEG Card](/jpegd-dao/about-the-jpegd-protocol/tokens/jpeg-cards.md)\
45 ETH = max borrow with staked JPEG Card\
60 ETH = max borrow with staked JPEG Card and locked JPGD tokens\
Assumed JPGD token price = $0.0006\
Assumed ETH price = $1,000

Increase in credit limit due to locked JPGD tokens = 15 ETH x 20% cost (in JPEG tokens) = 3ETH / $0.0006 = 5,000,000 JPGD tokens.

With a 3 ETH cost you essentially unlock an additional 15 ETH of credit.

### Withdrawal

Boost owners can request a withdrawal at any time. The processing period is of **7** days, after which the boost associated to the position will be disabled and the $JPGD will be available for withdrawal.

When a user locks JPGD tokens to get a boost, those tokens remain theirs. If they transfer the NFT, the boost stays active for whoever owns the NFT next. Only the boost owner can disable a boost.

### Liquidation

In the case of liquidation, the locked JPGD gets burned.

### Legacy boosts

All boosts created prior to the application of [PIP-58](https://snapshot.org/#/jpeg%E2%80%99d.eth/proposal/0x7c06ac3e2ed666c445378c58f71ee4e9b209ef84faa1a22375689dd9c29dd8d2) have been marked as having a withdrawal requested and unlock time will be the current unlock time set when creating the boost. Users can cancel the withdrawal request anytime.

## Learn how to enable LTV Boost <a href="#id-84d7" id="id-84d7"></a>

[View tutorial ->](/jpegd-dao/cdp-lending-guides/borrowing/create-an-ltv-boost.md)


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