Health Factor
DeFi
Metric indicating how close a position is to liquidation.
The health factor summarizes your margin of safety in borrowing systems. If it drops below the protocol threshold, liquidations can repay debt by selling your collateral. Check it often and keep a buffer.
Frequently asked questions
What value is safe?
Above 1.2–1.5 is common advice, but it depends on volatility. Keep a buffer to survive swings while you are offline.Why did my health factor drop overnight?
Price moves, interest accrual, or collateral changes. Add collateral or repay debt to improve it.Can I automate risk controls?
Some protocols and tools support auto repay or alerts. Use them, but still check positions yourself.