Health Factor

For each wallet, these risks parameters enable the calculation of the health factor:

Hf=CollateraliinETH×LiquidationThresholdiTotalBorrowsinETHH_f = \frac{ \sum{Collateral_i \: in \: ETH \: \times \: Liquidation \: Threshold_i}}{Total \: Borrows \: in \: ETH}

When Hf<1H_f < 1 the position may be liquidated to maintain solvency .

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