# Ai Agents powered Chat & Health Factor (HF)

### Ai Lending Assitant

* Ask questions in-app to Luca Ai - A conversational terminal that guides users through lending, borrowing, understanding risk, and navigating the DApp.

### Health Factor

* The health factor is a critical aspect of the protocol’s risk management powered by Luca Ai. It is used to analyse & track whether a borrower’s collateral is still sufficient to cover their loan. The health factor is calculated as:

```
HF = (Collateral Value * LTV) / Loan Amount
```

* If **HF > 1**, the loan is safe.
* If **HF < 1**, the loan is under-collateralized and eligible for liquidation.
