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banked.Health factor and liquidation
The one number to watch, what the lines are, and what happens if a loan crosses one.
The lines
A loan is liquidated when the debt reaches a share of the bag's value:
- 55% for memecoins,
- 80% for index ETFs and mega-cap stocks,
- 65% for volatile stocks.
Because a memecoin loan starts at no more than 20% of the bag, the coin has to fall 64% before it reaches the line.
Health factor
Health factor is how far a loan is from its line. 1.0 is the line. 2.0 means the coin can halve before the loan reaches it. The higher the number, the safer the loan.
On your dashboard the health factor is drawn as a coin sliding toward a slot: far from the slot is safe, in the slot is liquidation. Under it, the page says how far the market cap can fall before the loan gets there.
Liquidation market cap
Everything here is shown in market cap, with the price underneath. Each loan shows the market cap at which it would be liquidated, and the chart on the market page draws that level as a dashed gold line under the coin's history. If the coin's market cap crosses the line, the loan is liquidated.
Alerts
The dashboard reads your loans every block and steps through four levels:
| Health factor | Level |
|---|---|
| 1.5 and above | Healthy |
| under 1.5 | Watch |
| under 1.2 | At risk |
| under 1.05 | Near liquidation |
Each step fires once, as a banner on the dashboard. Tick the box under the banners and, while the tab is open, your browser shows a notification too. Alerts step back down only once the loan has recovered by a clear margin, so a loan sitting on a line does not ring twice.
What happens at liquidation
The bot sells the whole bag into the coin's pool the same block the loan crosses the line. Out of the proceeds it pays the debt and a liquidation fee (5% on memecoins, 3% on stocks). Whatever is left comes back to your wallet.
You keep any USDG you borrowed. What you lose is the bag, less the remainder returned to you.
Staying clear of the line
- Repay some USDG. The dashboard shows how much brings the loan back to 1.5.
- Add more of the coin. The dashboard shows how many tokens do the same.
- Borrow less than the maximum in the first place.