Formula and accounting assumptions
For asset j, stressed weighted collateral equals current value j × (1 + price shock j) × liquidation threshold j. Add those contributions and divide by current debt × (1 + debt-price shock). Enter percentage fields as ordinary percentages: minus 50 means a 50% decline. The lists must contain the same number of rows, and every collateral row retains its own threshold rather than inheriting a simple average.
Worked hypothetical example
Consider collateral values of $100 and $200 with thresholds of 80% and 50%. Initial weighted collateral is $180, supporting a health factor of 1.80 against $100 of debt. If the first asset falls 50% and the second is unchanged, weighted collateral becomes $140. A simultaneous 20% increase in debt-asset value raises debt to $120, producing a stressed health factor of approximately 1.1667 and a $20 weighted collateral buffer.
Interpret the scenarios and limits
This is a deterministic simultaneous scenario, not a correlation estimate, probability or liquidation forecast. It excludes changing thresholds, interest accrual, account modes, isolated collateral rules and differences in oracle update timing. A ratio above one applies only to the entered values and assumptions. Use consistent USD observations and review the contribution rows before comparing aggregate ratios; an incorrect sign in one asset shock can materially change the apparent protection supplied by the whole collateral set.