Health factor

Health factor compares collateral, weighted by liquidation thresholds, with debt. It determines whether an account can be liquidated. Borrowing and withdrawing with debt also require enough LTV-weighted collateral.

Definition

Collateral and debt values use USD-WAD (10^18). Each supply position uses its stored liquidation-threshold snapshot. Thresholds use BPS (10_000 = 100%):

weighted_collateral_usd = sum(floor(collateral_value_i * threshold_i / BPS))
HF = floor(weighted_collateral_usd * WAD / total_debt_usd)

The health-factor division saturates at i128::MAX. With no debt, the result is also i128::MAX, representing an unbounded HF. An account is liquidatable when HF < 1e18. Each position value comes from its scaled balance, market index, and token price. Valuation for risk gates floors collateral at each step and ceils debt. The read-only get_total_borrow_usd view uses half-up rounding, so its displayed total is not the debt input used by the solvency gate.

Borrowing power

Loan-to-value (LTV) limits the debt an account may keep after borrowing, indebted withdrawal, or account-strategy finalization. The controller refreshes listed supply LTVs before these checks. A stored liquidation threshold can remain below a refreshed LTV, so the effective weight uses their minimum:

ltv_collateral_usd = sum(floor(collateral_value_i * min(LTV_i, stored_threshold_i) / BPS))
ltv_collateral_usd >= total_debt_usd
HF >= WAD

These calls also require ltv_collateral_usd to meet the configured minimum-borrow-collateral floor when it is nonzero. The default is $5 WAD. If debt remains, each supply position below 3 decimals must also hold at least two token base units. At 2 decimals, that minimum is 0.02 token. Such a market must be the account’s only supply market. Debt-free accounts skip these post-operation risk gates. Ordinary repayment and liquidation do not apply this base-unit floor. The checks use the post-operation positions and market indexes within the same transaction. A failed check reverts the operation. See Accounts and risk for snapshot updates and Risk parameters for parameter constraints.

Worked example

An account supplies $1,000 of collateral with a 78% liquidation threshold (7800 BPS) and borrows $500:

weighted_collateral = 1000e18 * 7800 / 10000 = 780e18
HF = 780e18 * 1e18 / 500e18 = 1.56e18

The displayed HF is 1.56. If collateral value halves while debt remains $500, HF falls to 0.78, making the account liquidatable. This example establishes liquidation eligibility; an additional borrow must still pass the separate LTV and minimum-collateral gates.

Interpreting the view

Result	Meaning
`HF >= 1e18`	Not liquidatable by HF; borrowing and withdrawal still have other requirements.
`HF < 1e18`	Eligible for liquidation, subject to the liquidation operation’s checks.
`HF = i128::MAX`	Debt-free, saturated, or missing account state; check `account_exists` and debt positions before interpreting it.

get_health_factor(account_id) returns the raw WAD integer. Divide by 10^18 for display and handle i128::MAX as a sentinel. Debt-free withdrawals skip account valuation but still require authority, permitted exit flags, cash, and the applicable pool utilization check. Any operation that needs account valuation requires a complete usable price snapshot. Missing or invalid prices revert valuation; they do not count as zero. See Oracles.

A displayed HF is a snapshot. Price changes, accrued debt, position changes, and integer rounding can change the result before submission. Read fresh state and simulate the transaction; a cached HF does not establish that a borrow or withdrawal will succeed.

Continue with Liquidations for liquidation execution and Liquidation math for sizing and dust rules.

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Reference

Operations

Definition

Borrowing power

Worked example

Interpreting the view

​Definition

​Borrowing power

​Worked example

​Interpreting the view

Definition

Borrowing power

Worked example

Interpreting the view