
Markets
DeFi collateral: how health factor and liquidation work
A health factor measures a borrowing position against liquidation rules. Understanding its inputs matters more than memorizing a supposedly safe number.
A market number needs a definition, denominator, timestamp and coverage boundary. Learn to compare supply, prices, returns, trading activity and rankings without turning incomplete measurements into stronger claims than the evidence supports.

A health factor measures a borrowing position against liquidation rules. Understanding its inputs matters more than memorizing a supposedly safe number.