# Liquidations The health factor serves as the main barometer for gauging the security of a borrowing position. It illustrates how much collateral headroom a user retains before risking liquidation. Formally, it’s calculated as: ``` Health Factor = (Total Collateral Value * Weighted Average Liquidation Threshold) / Total Borrow Value ``` A value under **1** signals an undercollateralized position, prone to liquidation. ## Liquidation Thresholds Each asset in each market in MORE carries its own liquidation threshold, a setting that defines how aggressively the protocol treats that asset as collateral. For instance, if a user deposits $10,000 of ETH with an 80% threshold and borrows $6,000 worth of stablecoins, the resulting health factor stands at 1.33, safely above the point of liquidation. ## Position Management Because real-world markets are fluid, the health factor shifts whenever collateral or borrowed asset prices change, or if the user adjusts their borrow level. To lower liquidation risk, a user can repay part of their debt or add additional collateral, both of which raise the health factor. ## Volatility and Correlation There is no single “ideal” health factor across the board. It depends on the volatility and correlation of the underlying tokens. Highly correlated assets or relatively stable assets (like stablecoins) may allow a lower health factor without increasing exposure to unpredictable price swings. ## Liquidation Process Should the health factor drop below 1, the protocol marks the position for liquidation. This status implies the collateral is insufficient to secure the outstanding borrow. Liquidators in the network then compete to repay a fraction of the debt, receiving the corresponding collateral plus a liquidation bonus (financed by a fee paid by the borrower). Since anyone can initiate this action, liquidators often rely on timely monitoring and rapid transaction submission to succeed. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.more.markets/more-markets/editor/interactive-blocks-2.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.