# 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.

<figure><img src="https://2648264984-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FPpB7sqybnZJPPHLhKR2S%2Fuploads%2FWULovaFsWBCpfpvSw1oS%2Fimage.png?alt=media&#x26;token=bb8a7625-1fb1-441d-b664-830ed73298e7" alt="" width="563"><figcaption></figcaption></figure>

Here’s how we calculate it:

***

**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

***

**Your Borrowed Assets**

| Asset | Price | Borrowed |
| ----- | ----- | -------- |
| USDC  | $1    | 2000     |

* **Total Debt** = 2000 × $1 = **$2000**

***

**Health Ratio Formula**

**Health Ratio = Total Collateral Value / Total Debt**\
\&#xNAN;**= $4100 / $2000 = 2.05**

***

* 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.