> ## Documentation Index
> Fetch the complete documentation index at: https://docs.creda.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Health Factor

> What health factor means, how it’s calculated, and how it relates to LTV

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.

## 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

## 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

## 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

## 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