Health factor

Your health factor compresses an entire position into one number:

healthFactor = Σ(collateral value × liquidation threshold) / total debt value

Above 1.00 you're safe. At or below 1.00, your position can be liquidated. With no debt at all the health factor is infinite, shown as ∞.

The two thresholds

Each collateral asset carries two percentages that bound your position:

• Max LTV caps new borrows. At 80%, $10,000 of collateral supports at most $8,000 of new debt.
• Liquidation threshold is where liquidation begins, always a little higher (say 85%). The gap between the two is your built-in buffer: you can't borrow yourself directly into liquidation.

With several collateral assets, both values are weighted averages across everything you've enabled.

Play with it

Try the health factor

Collateral value: $10,000Debt: $4,000Liquidation threshold: 85%

Health factor

2.13

Current LTV

40.0%

Price drop to liquidation

52.9%

The bar shows how much of your liquidation capacity is used. At a health factor of 1.00 the bar is full and the position can be liquidated.

Practical guidance

The health factor moves without you: prices drift and interest accrues onto debt. Positions opened near the max LTV can cross the threshold on a normal market day. A floor of 1.5 is a common personal rule; volatile collateral deserves more room than stables.

Every action in the app (supply, withdraw, borrow, repay, collateral toggles) shows your health factor before and after, so there's never a reason to sign blind.