Collateral is weighted by its liquidation threshold

Health factor = sum(collateral value × liquidation threshold) / total debt value

Each collateral row has a price and a supplied liquidation threshold. The simulator sums those threshold-weighted USD values, then divides by the USD value of your debt rows. Different collateral thresholds must be weighted by their values; taking a simple average of the percentages would give the wrong result.

Both sides can change

Hypothetical example: two collateral units worth $2,000 each at an 80% threshold support $3,200 of threshold-weighted value. Against $2,000 debt, HF is 1.6. A scenario collateral price of $1,600 reduces that value to $2,560 and HF to 1.28. A change in the debt asset price can also change HF, even if the debt quantity is unchanged.

A boundary is not a guarantee

In this supported model, HF below 1 indicates liquidation eligibility. Exactly 1 is a boundary, not a promise of safety or a prediction that a transaction executes. With zero debt the ratio has no denominator, so the tool says there is no debt instead of displaying infinity.

Repayment for your chosen target

Required repayment = max(0, debt − weighted collateral / target HF)

At $2,560 eligible collateral and $2,000 debt, a target HF of 1.5 requires about $293.33 of repayment, holding all other assumptions fixed. This target is supplied by you. The calculator does not claim that any particular HF is universally safe.

Parameters this model does not know

No wallet, lending account, oracle price or current governance threshold is fetched. Supply the applicable thresholds yourself. E-mode, isolation, collateral eligibility, interest accrual, caps, liquidation bonuses, close factors and execution slippage are excluded. Use the result to examine a stated scenario, then consult the actual protocol and account information before acting.