LTV, Health Factor and Safety Zones

Three numbers tell you how safe a position is. The app shows all three for every position.

The formulas

A worked example

You hold 50 NVDA tokens at $200 ($10,000), with NVDA's 58.8% liquidation threshold, and you borrow $3,000.

LTV

$3,000 ÷ $10,000 = 30%.

Health factor

58.8% ÷ 30% = 1.96.

Liquidation price

$3,000 ÷ (50 × 0.588) = about $102.04, a fall of about 49%.

Room to borrow

50% of $10,000, minus $3,000, is $2,000.

Safety zones in the app

The LTV zones are the same for every asset. Next to them, the app colours your health factor: green at 1.80 and above, amber from 1.25 up to 1.80, and red below 1.25. Because the health factor also reflects your asset's threshold, the two can differ: the same LTV gives a higher health factor on MSTR (62.5%) than on GLD (54.1%), but MSTR also moves far more, so that extra room can disappear faster. On the steadiest assets, the danger zone sits close to the threshold.

What moves your numbers

The stock price

A fall raises your LTV; a rise lowers it.

Borrowing more or repaying

Borrowing raises LTV; repaying lowers it.

Adding or withdrawing collateral

Adding lowers LTV; withdrawing raises it.

An assignment

It reduces your token count but happens only after a rally, so your LTV usually ends lower than before the rally. Check it after any assignment.