Aave Health Factor Calculator
Calculate your Aave V3 health factor, liquidation price, and simulate price drops to understand your liquidation risk.
Your collateral
$2,500.00 per ETH
LT 83.0% · LTV 80.5%
Your borrow
Max borrow: $2,012.50
What if ETH drops by...?
Your Health Factor
1.38
At Risk
Estimates based on Aave V3 Ethereum parameters. Actual values may differ due to interest accrual and oracle updates. Prices from CoinGecko (may be delayed). Verify on app.aave.com.
How Health Factor Works in Aave V3
The health factor is the key metric that determines whether your Aave position is safe or at risk of liquidation. It's calculated as:
HF = (Collateral in USD × Liquidation Threshold) / Total Debt in USD
HF > 2.0 — Safe
Your position can absorb significant price drops.
1.5 < HF < 2.0 — Moderate
Consider adding collateral or repaying debt.
1.0 < HF < 1.5 — At Risk
A moderate price move could trigger liquidation.
HF < 1.0 — Liquidatable
Liquidators can repay part of your debt and claim collateral at a discount.
Understanding Liquidation Threshold vs. LTV
Loan-to-Value (LTV) determines the maximum amount you can borrow against your collateral. Liquidation Threshold is the point at which your position becomes eligible for liquidation. The gap between LTV and Liquidation Threshold provides a safety buffer.
Example: ETH on Aave V3 Ethereum
You can borrow up to 80.5% of your collateral value, but liquidation only triggers when your debt exceeds 83%.
Tips for Managing Your Health Factor
- Keep your health factor above 1.5 to maintain a safety buffer against market volatility.
- Use the price drop simulator above to stress-test your position against market crashes.
- Diversify collateral assets to reduce concentration risk.
- Set up automated alerts to get notified when your health factor drops — DeFi Monitor sends Telegram and Discord alerts 24/7.
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