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Research field guide

Repay debt or add collateral to repair health factor

Debt repayment changes the denominator of health factor; collateral top-up changes its weighted numerator. Compare their cash requirements under the same target and threshold.

A worked distinction

For 10,000 USD collateral, an 80% threshold and 6,000 USD debt, the simplified health factor is 1.3333. Reaching 1.6 requires debt of 5,000 USD or collateral of 12,000 USD if the other side stays fixed. These are scenario values, not transaction quotes.

What to verify in your own analysis

Check asset prices, accrued debt and threshold weighting. Neither action is complete until executed and reflected by the protocol; transaction failure and oracle movement remain possible.

Write down the market or protocol identifier, units, observation window and data source before comparing outputs. Keep unavailable values distinct from zero. Capture a baseline and change one assumption at a time so the resulting difference can be explained.

Use the linked working tools

Open the related tools below to inspect actual public observations or calculate a local scenario. The numerical example above is illustrative, not a current quote. Export the result together with its assumptions if you need a reproducible research record.

The review checklist records what you checked in this tab. Completion measures your own notes, not whether an investment is safe, suitable or profitable.

Primary documentation

Research review record

Use this local checklist while you work through the explanation. Nothing is saved or sent automatically.

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