Health Ratio

At EnsoFi, we use Health Ratio to help you monitor your borrowing risk. It’s a key metric that shows how safe your position is. The higher the Health Ratio, the safer your position. If it drops too low, you risk liquidation.

Here’s how we calculate it:

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Your Supply/ Collateral Portfolio

Asset	Price	Deposit
ETH	$1500	1
SOL	$130	20

• Total Collateral Value = $1500*1 + $130*20 = $4,100

• Maximum Borrowing Limit = Total Collateral Value/ 1.43 = $2867.13

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Your Borrowed Assets

Asset	Price	Borrowed
USDC	$1	2000

• Total Debt = 2000 × $1 = $2000

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Health Ratio Formula

Health Ratio = Total Collateral Value / Total Debt = $4100 / $2000 = 2.05

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• A Health Ratio above 1.43 is considered safe.

• A Health Ratio near 1.2 increases your liquidation risk.

• If it drops below 1.2, your position may be liquidated to protect the protocol.