> For the complete documentation index, see [llms.txt](https://lend-finance-organization.gitbook.io/lendx-documentation-v1.0/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://lend-finance-organization.gitbook.io/lendx-documentation-v1.0/project-info/p2p-lending/liquidity-ltv.md). # Liquidity LTV **Lenders can flexibly LTV Liquidation** : When the assets are close to the liquidation limit then the system will send a warning via email and notification on the application as soon as the collateral value reaches the threshold liquidation. You can pay off part or all of the loan to avoid asset liquidation. **LTV :** The Initial LTV ratio determines the initial amount of tokens that can be borrowed (Lending limit offered by the lender) . **LTV at Liquidation :** Is the allowable limit if ratio LTV is higher than the ratio LTV at Liquidation offered by the lender, LENDFI will liquidate the collateral to fully repay your loan and interest. Liquidation will be triggered when the corresponding Liquidation LTV ratio is reached
The liquidation penalty will be 3%. This fee (20% will be shared with the lender and 80% will be transferred to the LendFi platform's liquidity wallet)