Health Factor
The Health Factor (HF) is the most important number users must watch when they have an open borrow position on ZonaLend. It represents how safe a position is from liquidation.
How the Health Factor is Calculated
Collateral Value: Current USD value of all assets supplied as collateral.
Liquidation Threshold: Weighted average threshold across your collateral, multiplied into the collateral value.
Borrowed Value: Total USD value of what you have borrowed, including accrued interest.
How to Monitor and Improve Your Health Factor
Check your Health Factor in real time on the ZonaLend dashboard
Add more collateral → increases numerator → higher Health Factor
Repay some debt → decreases denominator → higher Health Factor
Important Warning
Always monitor your Health Factor, especially during volatile market periods. If your Health Factor drops below 1.0, your position will be liquidated, resulting in partial or full loss of collateral. Consider setting up alerts or regularly checking your position to avoid liquidation.