Account Health

How your Account Health is calculated

Account Health indicates how much you have borrowed relative to your borrow limit. Your Account Health goes up when you supply assets or repay debt and goes down when you borrow. If your Account Health goes below 0%, your loan will be partially liquidated with a liquidation penalty deducted from your collateral.

The health of your account is calculated for each market separately.

$$BorrowLimit = \sum_{assets} SuppliedValue_i\cdot CollateralFactor_i\newline BorrowUsage = \sum_{assets} BorrowedValue_j\cdot LiquidationThreshold_j\newline AccountHealth = 1 - \frac{BorrowUsage}{BorrowLimit}$$

​Where

• $CollateralFactor$​ is a parameter of asset you have supplied,

• $LiquidationTreshold$ is a parameter ​of asset you have borrowed,

• $SuppliedValue$​ and $BorrowedValue$ are the current market values of assets ​

Your Account Health may suddenly decrease if the price of asset your borrow rises or and the price of asset you supply falls. To avoid liqudation, monitor your Account Health and keep it at a reasonable level by paying off debt or supplying more collateral when needed.

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