Simulation Insight
Current snapshot Hf is 1.84. Your projected Hf of 1.84 accounts for interest accrual and price action.
Formula: (Collateral Value × Liquidation Threshold) / Borrowed Value. We project this into the future by applying daily interest rates and simulating price changes.
The Health Factor (Hf) represents the safety of your loan against the collateral. If Hf falls below 1.0, your position can be liquidated. A factor of 2.0 is generally considered safe, while 1.1 is extremely risky.
When liquidated, a 'bonus' (typically 5-10%) is given to liquidators to incentivize them to close your debt. This means you lose significantly more than just the debt amount.
Crypto markets can move 20% in minutes. During high volatility, network congestion can make it impossible to add collateral or repay debt in time to save a position.
Borrow APY is almost always higher than Supply APY. This gap causes your debt to grow faster than your collateral, slowly lowering your Health Factor every day.
