Last updated 9 months 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∑CollateraliinETH×LiquidationThresholdi
When Hf<1H_f < 1Hf<1 the position may be liquidated to maintain solvency .