Health factor and liquidation
When a Stellar account can be liquidated, and what a liquidation takes.
Health factor
Health factor = collateral value ÷ debt value (in USD). Debt includes interest that is still pending.
- An account with debt is healthy only when its health factor is strictly above 1.1.
- At or below 1.1, it can be liquidated.
- With no debt, the account is always healthy.
What a liquidation takes
On Stellar, a liquidation repays the full debt and takes all remaining collateral. Anyone can liquidate an eligible account; the liquidator pays the debt back to the pools.
A liquidation does not close your SmartAccount.
How to stay safe
Watch your health factor. To raise it, repay debt or add collateral.
Full details: Health Factor · Liquidation