Molend
  • Introduction
  • Depositing & Earning
  • Borrowing
  • Liquidations
  • Flash Loan
  • Oracles
  • ADDITIONAL DOCUMENTATION
    • Points
    • Risk Parameters
    • Variable Interest Rate Parameters
    • Health Factor
    • Flash Loans Parameters
    • Audit
    • Contracts
    • Glossary
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  1. ADDITIONAL DOCUMENTATION

Health Factor

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Last updated 1 year ago

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

Hf=∑Collaterali in ETH × Liquidation ThresholdiTotal Borrows in ETHH_f = \frac{ \sum{Collateral_i \: in \: ETH \: \times \: Liquidation \: Threshold_i}}{Total \: Borrows \: in \: ETH}Hf​=TotalBorrowsinETH∑Collaterali​inETH×LiquidationThresholdi​​

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