# Health Factor

The Health Factor is a numerical value that indicates the safety of your position from its liquidation point. A higher value indicates a healthier position, and thus, greater safety against liquidation.

If the Health Factor drops to 1 or below, liquidation is triggered.

The calculations are as follows:

Health Factor = Collateral Credit / Borrow Credit

<figure><img src="/files/FSxsdrjvW62GdepUW9gc" alt=""><figcaption></figcaption></figure>

Where

* **Collateral Credit:**

<figure><img src="/files/AJ9Y3CWwtCQy7MEiA8ls" alt=""><figcaption></figcaption></figure>

* **Borrow Credit:**

<figure><img src="/files/1LJ2xbqi3LaihvAlaAtR" alt=""><figcaption></figcaption></figure>

#### Collateral and Borrow Factors <a href="#collateral-and-borrow-factors" id="collateral-and-borrow-factors"></a>

Note: Collateral Factor should be <= 1, Borrow Factor should be >= 1


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