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Dynamo shows your liquidation risk based on how the price of your collateral moves. This helps you understand how much collateral price decline your Morpho borrow position can absorb before being eligible for liquidation.

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How It Works

For each open borrow position, Dynamo calculates and displays:
  • Current health factor — Your position’s distance from the liquidation threshold (LLTV).
  • Price drop tolerance — How far your collateral’s price can fall before your health factor reaches 1.0 (the liquidation threshold).
  • Liquidation price — The collateral price at which your position becomes eligible for liquidation.

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Reading the Risk Indicator

The liquidation risk display uses the same Safe / Moderate / At Risk / Liquidated tiers as the

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Staying Safe

  • Add collateral to increase your health factor.
  • Repay debt to reduce your borrowed amount and move away from the liquidation threshold.
  • Use the Safety Margin to set a conservative target LTV and keep automatic discipline on your position.
For a deeper explanation of how health factors and liquidations are calculated, see the Methodology page.