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Documentation Index

Fetch the complete documentation index at: https://docs.creda.finance/llms.txt

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Health factor (HF) is the live safety gauge for your position. Keep it well above 1.0 to avoid liquidation; aim for 1.5+ as a practical buffer.

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The Formula

HF = (Σ collateral value × liquidation threshold) / total debt
Interpretation:
  • Higher collateral or thresholds → higher HF
  • More debt or rising debt asset price → lower HF
Ranges:
  • 2.0+: comfortable for most users
  • ~1.5: manage actively; react to volatility
  • ~1.2: risky; add collateral or repay soon
  • <1.0: can be liquidated

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What Moves HF

  • Collateral down → HF down; collateral up → HF up
  • Borrowed asset up → HF down (debt worth more in USD)
  • Interest accrues on debt → HF drifts down over time

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Keeping It Safe

  • Plan around a range, not a point; set alerts (e.g., 1.6/1.4/1.2)
  • Add collateral, repay, or reduce exposure early when needed
  • Check parameters shown in the UI for Isolation Mode or EMode

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LTV vs Health Factor

LTV sets how much you can borrow initially; HF tells you how safe you are right now. LTV (Loan‑to‑Value):
  • Per‑asset limit used to size the initial loan
  • Example: 70% LTV → up to $70 per $100 collateral
  • Protocol‑set; changes infrequently
HF (Health Factor):
  • Live risk metric using liquidation thresholds
  • HF = (Σ collateral × threshold) / total debt
  • HF > 1.0 is safe; < 1.0 can be liquidated
How to use them:
  • When borrowing: use LTV to size initial borrow
  • When monitoring: track HF as markets move
  • Good practice: borrow well below max LTV and keep HF ≥ 1.5