# Required Declines to Trigger Liquidation

#### Required Decline in pTKN (vs Paired Asset) to Trigger Liquidation

The following table shows how much pTKN would need to decline (in % terms) **relative to the paired asset** in order to reach the liquidation threshold of **83.33% LTV**, which corresponds precisely to **2.66x leverage**.

The relationship between leverage and LTV is:

To determine the maximum tolerable decline before hitting 83.33% LTV, we use:

| **Leverage Factor** | **LTV** | **Max Tolerable Decline in pTKN (vs Paired Asset)** |
| ------------------- | ------- | --------------------------------------------------- |
| 1.33x               | 16.5%   | 96.1%                                               |
| 1.66x               | 33.0%   | 84.3%                                               |
| 2.00x               | 50.0%   | 64.0%                                               |
| 2.33x               | 66.6%   | 36.3%                                               |
| 2.66x               | 83.0%   | 0.70% (liquidation imminent)                        |

📌 *At 2.66x leverage, you are at the liquidation threshold. Any adverse movement in pTKN vs the paired asset will trigger liquidation. At lower leverage levels, pTKN can decline significantly before triggering liquidation, providing more buffer.*

Understanding these thresholds helps inform responsible leverage decisions, especially when selecting volatile or highly correlated assets.

<figure><img src="/files/BhF9fXSRlYOv0vJUztOy" alt=""><figcaption></figcaption></figure>


---

# 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.peapods.finance/liquidations-lvf/required-declines-to-trigger-liquidation.md?ask=<question>
```

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.