The Health Factor

The Health Factor is the cushion between the current value of your collateral and the level at which the position would be liquidated. A Health Factor of 1.00 means you are at the liquidation threshold. Anything above is safe, and the higher it is the more market drawdown you can absorb before any action is needed.

We surface the Health Factor on every position and we notify well in advance of any threshold being approached. There is no cost to being close to the line, and there is no cost to being far from it. The only thing that matters is collateral value relative to debt.