# 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

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Where

* **Collateral Credit:**

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* **Borrow Credit:**

<figure><img src="https://425876792-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5qUIbNBBXvoPv3QbkKp9%2Fuploads%2FUtpWM8iIpm6ZjeVrWqq4%2FBorrowCredit.png?alt=media&#x26;token=4ad8010d-2014-4425-bee6-96380b7b3c5d" 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