Health Factor Maintenance

Health Factor Maintenance is the continuous monitoring and adjustment of a borrower's collateral-to-debt ratio to ensure it stays above the liquidation threshold. The health factor is a key metric that indicates how close a position is to being liquidated.

If the health factor falls, the protocol may require the user to deposit more collateral or pay down debt. Maintenance involves real-time calculations and automated notifications to users.

It is a vital service that helps users avoid the penalty of liquidation. For the protocol, it is a way to proactively manage risk and reduce the frequency of forced liquidations.

Effective health factor maintenance requires accurate, real-time data and a user-friendly interface. It is essential for a positive and secure user experience in DeFi.