NeuralSoft Digital

Buffer Guide

How we read collateral headroom before a loan posts.

This guide explains the language we use in Smart Crypto Calculator PC-style desk estimates: collateral value, haircuts, loan-to-value, and liquidation buffer. It is written for people working on a desktop monitor with a lender schedule open beside a spreadsheet.

Collateral value vs. post-haircut value

Raw market value is only the starting line. Lenders apply haircuts so that the post-haircut collateral value is lower than the spot total. Our estimates always show both numbers. If a session only cites the higher figure, the buffer is not yet honest.

Loan-to-value at posting and at maintenance

Posting LTV is the ratio when the loan first funds. Maintenance LTV is the higher ratio that triggers warnings or liquidation processes under the lender’s rules. The gap between them is part of your working room — but not the whole buffer story.

What we mean by liquidation buffer

Buffer is the room between today’s collateral picture and the forced-close conditions in the schedule you provide. We express it as:

  • percentage headroom on collateral value after haircuts
  • approximate price move on the weakest collateral line before the maintenance line is hit

Both matter. A healthy percentage can still hide a thin price distance if one asset dominates the pledge.

Desktop layout we recommend

During sessions we keep three panes visible:

  1. Lender schedule (haircuts, LTVs, liquidation notes)
  2. Collateral inventory with quantities
  3. Working estimate sheet

Phone screenshots of a single ratio are not enough for a reliable review.

Common mistakes we see

  • Treating staking-locked coins as immediately pledgeable
  • Ignoring that stablecoin sleeves can still carry schedule-specific limits
  • Using yesterday’s prices without marking the timestamp on the estimate
  • Assuming two lenders share the same haircut table

When to book a session

Use the flagship buffer review before you sign. Use a health check when an open loan has drifted. Use a scenario walkthrough when you need forced-close prices written down for an internal discussion.

Ask for a desk slot when you are ready to walk your own numbers.