Collateral & health
Every borrow on Sward is backed by collateral you control. This page covers the mechanics of managing it.
Enabling and disabling collateral
Supplied assets have a collateral toggle in Your supplies. Enabled assets back your borrows and raise your borrowing power; disabled assets just earn yield and can never be liquidated.
Disabling collateral with open borrows shrinks your borrowing power instantly, so the app shows a before-and-after health preview and refuses the change when the protocol would reject it (health factor below 1.00).
Some assets can't be collateral at all (their max LTV is zero). They're marked in Markets.
Reading the health bar
The dashboard draws your position as a horizon bar:
- Green zone: room to borrow. Your current LTV is below the max borrow line.
- Between the ticks: you can't open new borrows, but you're not liquidatable either.
- Red zone: past the liquidation threshold. Liquidators can now close your position.
The current LTV marker, your health factor, and your remaining borrowing power all update live as prices and interest move.
Ways to improve health
In rough order of speed:
- Repay debt. The most direct lever; even partial repayments help.
- Supply more collateral. Raises the denominator.
- Enable an already-supplied asset as collateral, if you'd left it disabled.
Withdrawing collateral or borrowing more moves health the other way, and every action drawer shows the projected result before you sign.