Ai Agents powered Health Factor (HF)

The health factor is a critical aspect of the protocol’s risk management powered by 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.

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