> ## Documentation Index
> Fetch the complete documentation index at: https://docs.dynamo.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Safety Margin

> A synthetic LTV that lets you borrow more conservatively than Morpho's LLTV.

Morpho does not have a traditional LTV, only an LLTV (Liquidation Loan-to-Value). The Safety Margin is a Dynamo feature that creates a synthetic LTV so you can manage your borrow position more conservatively.

## How It Works

When you set a Safety Margin while borrowing from a [Morpho market](https://dynamo.finance/), Dynamo automatically reduces the amount you borrow relative to your collateral, keeping your actual borrowed amount below Morpho's LLTV threshold.

This gives you a configurable buffer between your current position and the liquidation point, effectively letting you operate as if there were a lower LTV limit, even though Morpho's underlying contracts only enforce LLTV.

## Why Use a Safety Margin?

* **Reduce liquidation risk** — A lower effective LTV means your position can survive larger collateral price drops before being at risk.
* **Automate discipline** — Instead of manually tracking your position, you set a target LTV once, and Dynamo enforces it.
* **Stay in control** — You choose how conservative to be. A tighter margin means more protection; a looser margin allows higher capital efficiency.

## Setting Your Safety Margin

You can configure the Safety Margin when opening or managing a borrow position. Dynamo will calculate the maximum borrow amount that keeps you within your chosen LTV, and reduce the borrowed amount accordingly.