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.
Reading the Risk Indicator
The liquidation risk display uses the same Safe / Moderate / At Risk / Liquidated tiers as the| Risk | Risk Level |
|---|---|
| Safe | Low — healthy buffer |
| Moderate | Medium — moderate buffer |
| At Risk | High — stress zone, small price moves could trigger liquidation |
| Liquidated | Liquidatable |
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.