system
A chat on subreddit /r/wallstreetbets
human
I'm so glad that someone is actually putting critical thought into my post. To cite the referenced SEC document, the LTV Ratio is defined as "Net Obligations divided by the Aggregate Collateral Share Value," where "Net Obligations" are in turn defined as "Loan Amount plus accrued and unpaid interest minus the amount of Cash Collateral minus the cash value of any Shares sold pursuant to a Permitted Sale Transaction that remain in the Collateral Account pending settlement." So the LTV Ratio is, effectively, the initial value of the loan ($12.5B) plus accrued and unpaid interest (which we will assume is $0) minus the amount of "Cash Collateral" (Mr. Musk could have/would have, hopefully, put up some amount in this honor) minus the "cash value of any Shares sold pursuant to a Permitted Sale Transaction that remain in the Collateral Account pending settlement," that is, minus any shares he has (since) sold to offset this amount, all divided by by the "Aggregate Collateral Share Value," which is the sum total of the shares (i.e., stocks) put up as collateral for this loan. As is stated on the line "Maximum Initial LTV Level," equal to 20%, the minimum share value that Mr. Musk could have put up as collateral should be equal to no more than 20% of the net obligation. So if the net obligation is $12.5B (assuming Mr. Musk put up no cash as initial collateral), the minimum share value he would have been able to put up as collateral would be a value such that 20% of those shares equal $12.5B, or $62.5B worth of shares. Assuming that he put up $2.5B in cash and wanted an initial LTV ratio of 12%, this would yield a share value of $66.7B in collateral (such that 12% of $66.7B equals the $10B of net obligation).
gpt
The 20% is the initial LTV, though.  It also specifies a margin call level of 35%.  So there will be no margin call unless LTV exceeds 35%, which is $28.6 billion of collateral with your assumption of $10B principal, or $35.7B if he didn't put up any cash.

&gt;LTV Margin Call Level 	35%  
&gt;  
&gt;**LTV Reset Level**  25%   
&gt;  
&gt;If on any day the LTV Ratio exceeds the LTV Margin Call Level, the Borrower shall, within two Business Days, (i) transfer sufficient Additional Collateral to the Collateral Account, (ii) prepay the Loan Amount and/or (iii) sell Collateral Shares (with the proceeds of such sales to be deposited in the Collateral Account and/or applied to prepay the Loan Amount) in order to bring the LTV Ratio to or below the LTV Reset Level