If Health goes below 1, a portion of the user's collateral can be liquidated.
The Health of a user's funds is a dynamic state, and depends on the liquidation limit of the collateralized position against the value of the loan.
Health is how “safe” your loan is, defined as the proportion of total deposited collateral against the total value of the loan. It increases or decreases based on the value fluctuation of the user's deposited asset value against the user's borrowed value.
Higher Health value improves the user's collateral safety and borrow position
Lower Health value worsens the user's collateral safety and borrow position
Health > 2 : Green
Health < 1.99: Orange
Health <1.1: Red
At Health < 1, liquidations will occur
Colored indicators used to represent health
To improve Health, the user can:
- Repay a portion or the full amount of the borrowed amount
- Add more collateral under