# Borrowing Eligibility

The maximum borrowing limit is determined by the collateral value deposited and the available liquidity for the asset. If there is insufficient liquidity or if your Health Factor is too low, borrowing the asset may not be possible.

<figure><img src="/files/BwsiNE5NcKj1BbyObkTL" alt=""><figcaption></figcaption></figure>

The Loan-to-Value (LTV) ratio signifies the highest borrowing capacity of specific collateral. To illustrate, if a collateral like USDC has a maximum LTV of 80%, the user can borrow up to $0.80 worth of DAI in the principal currency for every $1 of USDT in collateral. This data is accessible on the Markets page for each asset.


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