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

Where

• Collateral Credit:

• Borrow Credit:

Collateral and Borrow Factors

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