Calculate your DeFi lending health factor to assess liquidation risk. Enter collateral value, borrowed amount, and liquidation threshold to monitor your position safety.
The health factor is the single most important number for any DeFi lending position. It measures how safe your collateral is relative to your debt. When the health factor drops to 1.0 or below, your position becomes eligible for liquidation — meaning anyone can repay part of your debt and claim your collateral at a discount.
This Health Factor Calculator computes your current health factor based on your collateral value, liquidation threshold, and outstanding debt. It also shows the price drop percentage needed to trigger liquidation and your maximum safe borrowing amount.
Regularly monitoring your health factor prevents costly liquidations. A 5% liquidation penalty plus gas costs can wipe out months of yield. Stay informed, stay safe.
Crypto traders, long-term holders, and DeFi participants benefit from transparent crypto health factor calculations when planning entries, exits, or portfolio rebalances. Revisit this calculator whenever market conditions shift to keep your strategy grounded in accurate data.
Liquidation can cost 5-15% of your collateral in penalties. This calculator shows exactly how much breathing room you have and what price drop would trigger liquidation, letting you manage risk proactively. Real-time recalculation lets you model different market scenarios quickly, so you can act with confidence rather than relying on rough mental estimates.
Health Factor = (Collateral Value × Liquidation Threshold) / Borrowed Amount. Liquidation occurs when Health Factor < 1.0. Liquidation price drop = 1 − (Borrowed / (Collateral × LTV)).
Result: Health Factor = 1.547
Health Factor = ($15,000 × 0.825) / $8,000 = $12,375 / $8,000 = 1.547. The position can withstand a ~35.3% collateral price drop before liquidation. Maximum safe borrow at current collateral = $12,375.
When your health factor falls below 1.0, a liquidation bot can call the protocol's liquidation function. The bot repays up to 50% of your debt and receives equivalent collateral plus a bonus (typically 5-10%). This penalty makes liquidation expensive and preventable.
If you supply multiple assets as collateral, each contributes to your weighted health factor differently because each asset has its own liquidation threshold. More volatile assets have lower thresholds, dragging down your weighted average.
Set up automated alerts using tools like DefiSaver or Instadapp that can automatically add collateral or repay debt when your health factor drops below a threshold. This automation prevents costly liquidations while you sleep.
Most DeFi users aim for 1.5-2.0+. A health factor of 1.5 means you can withstand a ~33% drop. Conservative users target 2.0+, which handles a 50% drop. Aggressive leveragers may run at 1.2-1.5.
A liquidator repays a portion (typically 50%) of your debt and receives your collateral plus a liquidation bonus (5-15%). You keep the borrowed funds but lose collateral worth more than the debt repaid.
The liquidation threshold is the maximum borrowing power as a fraction of collateral. ETH might have an 82.5% threshold — meaning $82.50 can be borrowed per $100 of ETH collateral before liquidation occurs.
Yes. As borrow interest accrues, your debt increases, which reduces health factor. Over long periods with significant debt, interest alone can push you toward liquidation if you don't monitor it.
Yes — deposit additional collateral. Adding collateral increases the numerator of the health factor formula. You can also swap to a collateral with higher liquidation threshold.
Yes. Each protocol defines its own liquidation thresholds, bonus percentages, and health factor formulas. Aave, Compound, and Venus have different parameters. Always check the specific protocol documentation.