Health factor and liquidation

Health factor

Health factor = total collateral value ÷ total debt value (in USD). Every allowed token counts at its full value, including borrowed tokens held in the account.

• Healthy: no debt, or a health factor above 1.10.
• Can be liquidated: a health factor at or below 1.10.
• The app's own limits aim for 1.15 or above, to leave room for price moves.

What happens in a liquidation

Anyone can liquidate an account once its health factor is at or below 1.10. One liquidation repays part of one debt and takes one token:

• It repays up to 50% of that debt. The full debt can be repaid when the health factor is at or below 1 + the token's bonus, or when the debt is worth $100 or less.
• The liquidator receives tokens worth at most the repaid value × (1 + the token's liquidation bonus). The bonus is at most 5%.

How to stay safe

Watch your health factor on Margin and Portfolio. Prices, interest and trading results all move it. To raise it, repay debt or add collateral.

Full details: Health Factor · Liquidation