# Health, Safety and Collateral Ratio

There are three risk metrics/parameters that users will see on DeFi Saver. These include:

<details>

<summary>Health Ratio</summary>

The Health Ratio is Aave's indicator of the position's overall health. Once it reaches 1, the position is liquidated.

It's calculated as:

> *Health Ratio = (collateral value \* liquidation factor) / debt value*
>
> So if we take the example from the screenshot below, we'd have:
>
> *Health Ratio = (19,337 \* 0.83) / 9,998.70*
>
> *Health Ratio = 1.60*

<figure><img src="https://2276946674-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fo1t7pGS5d15WeQzoQ3Fe%2Fuploads%2Fj7Ra7Qx7WXOvrMaOGyg3%2FScreenshot%202025-10-21%20120112.png?alt=media&#x26;token=3f8f90de-2634-4697-ad94-edc6df79be65" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
*Information about the collateral asset's liquidation factor (Liq. Fac.) can be found in the "Market" section of the Aave dashboard*
{% endhint %}

<figure><img src="https://2276946674-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fo1t7pGS5d15WeQzoQ3Fe%2Fuploads%2FldH8gliRbl9jSrpLBR2K%2FScreenshot%202025-10-21%20120120.png?alt=media&#x26;token=8fb3dd57-6bb5-4052-a0e0-84fa34c654f8" alt=""><figcaption></figcaption></figure>

</details>

<details>

<summary>Collateral Ratio</summary>

The Collateral Ratio represents the % difference between your collateral and your debt in dollar amounts.\
\
It's calculated as:

> *Collateral Ratio = (collateral dollar amount / debt amount) \* 100*
>
> So if we take the example from the screenshot below, we'd have:
>
> *Collateral Ratio = ($84,690/ $42,992) \* 100*
>
> *Collateral Ratio = 196.98%*

<figure><img src="https://2276946674-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fo1t7pGS5d15WeQzoQ3Fe%2Fuploads%2F9Pq363kjyUPmmF59SXL6%2FScreenshot%202025-10-31%20151132.png?alt=media&#x26;token=f2475221-d151-43b8-b946-5d257c49cb98" alt=""><figcaption></figcaption></figure>

</details>

<details>

<summary>Safety Ratio</summary>

The Safety Ratio is a measure of how far you are from liquidation, expressed as a percentage.\
\
It is inversely proportional to your borrow power used, so the more you borrow, the lower your Safety Ratio.\
\
It's calculated as:

> *Safety Ratio = (( Collateral in dollar value \* collateral factor) / debt amount in dollar value) \* 100*
>
> So if we take the example from the screenshot below, we'd have:
>
> *Safety Ratio = (( $78,979 \* 0.8) / 35,002) \* 100*
>
> *Safety Ratio = 181.63%*

<figure><img src="https://2276946674-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fo1t7pGS5d15WeQzoQ3Fe%2Fuploads%2Foe9UkpV1cJwTk36Mw3z2%2FScreenshot%202025-04-16%20130107.png?alt=media&#x26;token=d68b1b8d-5cf5-4667-8f18-7be88fd86e61" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
*Information about the collateral asset's collateral factor/LTV (Col. Fac.) can be found in the "Market" section of the Aave dashboard*\
\
*Collateral Factor is the same metric as LTV.*
{% endhint %}

</details>

{% hint style="info" %}
*Depending on the protocols you use, they may only use one risk parameter (e.g. Collateral Ratio for Maker, or a protocol-specific one like Health Ratio for Aave v3)*
{% endhint %}

Using the calculations in this article will help you make projections for your position - such as how much a specific price change in your collateral's value would impact your health metrics.