Health Factor

The health factor in Beracana determines how safe your position is when borrowing. It’s a measure of your collateral value compared to the amount you’ve borrowed. The higher your health factor, the safer your position is.

If your health factor drops too low (due to changes in asset value or collateral levels), you become more susceptible to liquidation. Maintaining a strong health factor is key to avoiding liquidation and maximizing the benefits of borrowing.

Keeping a Healthy Position:

• Monitor your health factors regularly.

• Add more collateral or repay a portion of your loan if needed to stay safe.