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DeFi risk

Collateral Top-Up Calculator

Adding collateral can increase a modeled health factor without reducing debt. This calculator takes the existing liquidation-adjusted collateral value, the debt balance, the target health factor, and the liquidation threshold of the new collateral. It solves for the additional collateral value needed under those assumptions. Existing adjusted collateral means the sum of each collateral asset's value multiplied by its own threshold. The calculation uses browser-local entries, so prepare that weighted amount before comparing top-up assets with different thresholds or different valuation assumptions.

Enable JavaScript to edit assumptions, calculate and compare a baseline locally. The formula and methodology below remain available without JavaScript.

Apply the new asset threshold correctly

Additional value equals max(0, (target health factor × debt − existing adjusted collateral) ÷ new collateral threshold). The numerator is the missing adjusted collateral. Dividing by the new asset's threshold translates that shortfall into an unadjusted deposit value. Use a positive new threshold and a positive target. Applying the old portfolio's average threshold to a different top-up asset would misstate the required deposit.

Compare two hypothetical top-up assets

Suppose existing adjusted collateral is $9,600, debt is $8,000, and the target ratio is 1.50. Required adjusted collateral is $12,000, leaving a $2,400 shortfall. With an 80% threshold on the new asset, additional value is $3,000. An asset with a 60% threshold would require $4,000. Both reach the same modeled target because the deposited values differ while their liquidation-adjusted contributions are equal.

Check eligibility and valuation assumptions

The output is a collateral value, not a token quantity. Converting to units requires an asset price. The model assumes the new collateral is eligible and its threshold applies to the position as entered; supply caps, collateral enablement, and account modes can change that relationship. Debt and existing prices remain constant. If existing adjusted collateral already meets the target, required top-up is zero, even if depositing more would raise the ratio further.

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