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On-Chain Finance

Loan-to-Value and Health Factor

German: Beleihungsauslauf und Health Factor

Ratios expressing borrowing against collateral value and the distance to the liquidation threshold, recomputed continuously from oracle prices.

Why people look this up

Practical intent: how close a position is to being liquidated and what buffer is prudent.

Auf Deutsch

Beleihungsauslauf und Health Factor — Kennzahlen für das Verhältnis von Kredit zu Sicherheitenwert und für den Abstand zur Liquidationsschwelle, laufend anhand von Orakelpreisen neu berechnet.

Looking for how this maps to its traditional-finance counterpart rather than a standalone definition? See the Term Bridge, which also flags where the obvious analogy is wrong.