Health factor
A collateralized position’s safety metric; in Aave, liquidation-adjusted collateral value divided by debt value.
In more detail
Aave's health factor uses collateral values and their liquidation thresholds to compare the position's support with its debt. Below 1, the position is eligible for liquidation. It's a moving number, not a badge earned forever: price changes or growing debt can worsen it even when you haven't clicked another button.
How you might use it
Your Aave health factor falls as collateral prices drop, so you review the debt and collateral before it crosses the liquidation boundary.
Got a way to make Health factor click?
Add your takeBy Crypto Dictionary · Published · Updated
Go to the source
Use the original reference to explore the details behind this entry.
Read the referenceAn original explanation with a reference to follow. Protocol details and community usage can evolve. Sources & standards