Loan-to-Value Ratios

By default (without boosts), all borrowing positions allow up to 35% of the collateral value to be drawn as debt (max LTV), and liquidation will occur if the LTV ratio exceeds 35%.
For example: A user's NFT is valued at 100 ETH, and they draw up to 35 ETH in debt (35% LTV). If the NFT collateral value drops slightly or if the user draws more debt, the position's LTV ratio may exceed 36% and it will be liquidated.
A position's max LTV can be boosted up to 60% if an LTV Boost is enabled, and up to 70% when combined with the Cigarette boost.