Every collateralised borrowing position has a ratio describing how much you owe against what you posted, and a derived figure telling you how close that is to the liquidation threshold.
They move on their own, because they are functions of prices you do not control. Understanding how far they can move before anything happens is the whole job of managing a position.
How loan-to-value is calculated
LTV is the value of your debt divided by the value of your collateral. Each collateral asset has a maximum LTV the protocol will allow at borrow time, and a higher liquidation threshold at which it will act.
The gap between those two is your working room. A 75% maximum with an 80% liquidation threshold gives you much less room than the numbers suggest, because both move with price.
What health factor adds
Health factor expresses the same thing as a single number where one is the liquidation point. Above one you are safe; at or below one your collateral can be sold.
It is more useful than LTV because it already weights each collateral asset by its own threshold, so a mixed-collateral position has one number to watch.
How it moves without you doing anything
Collateral price falling raises LTV. Borrowed asset price rising raises LTV. Interest accruing on the debt raises LTV slowly and continuously. A protocol lowering a threshold for a risky asset raises it instantly.
Borrowing a volatile asset against volatile collateral means both ends move at once, which is why those positions liquidate on moves that look modest.
Practical targets
Borrowing near the maximum leaves no room for ordinary volatility. Many borrowers target a health factor well above the minimum and top up collateral or repay before it approaches it.
FBT Swap shows live position health where the protocol exposes it, with the data source named. It cannot prevent liquidation and does not promise to warn in time — the position is yours and the market does not wait.
A wide margin, not the maximum the protocol allows
FAQ
Frequently asked questions
Clear answers before you decide.
What health factor is safe?+
There is no universally safe number — it depends on how volatile your collateral and debt are. A stable-collateral, stable-debt position tolerates a much tighter factor than a volatile pair.
Does repaying part of a loan help immediately?+
Yes. Repaying reduces debt and raises the health factor straight away, as does adding collateral. Both are the standard responses to a falling factor.
Will I be warned before liquidation?+
Not reliably. Notifications depend on your device, connectivity and the data source being available, and prices can move faster than any alert. Treat monitoring as your responsibility.
Risk notice
Crypto assets are volatile and on-chain transactions cannot be reversed. You can lose money, including all of it. Nothing here is financial advice.
