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# Account Health

Every account's health is represented as a health factor. Your account health factor is a single value that encapsulates how well-collateralized your portfolio is - or, how healthy it is.
Account health is calculated with the following formula:
$A = \frac{assets_{weighted} - liabilities_{weighted}}{assets_{weighted}}$
Account health is typically between 0% and 100%, but can technically go as low as -∞.
When your account health reaches 0% or below, you are exposed to liquidation.
NOTE: weighted assets and liabilities are used in account health calculations. They're explained below.

## Assets as collateral

When you lend an asset on marginfi, there are a few values to keep in mind when pricing the value of your collateral:
• Every asset has a market USD price, as determined by its oracle.
• Every asset has a confidence band-adjusted market USD price, as determined by the bottom limit of the price oracle's 95% confidence band.
• Every asset has a weighted price, which is the confidence band-adjusted market USD price multiplied by the asset's deposit weight.
Here's an example:
• Let's say a price oracle supplies a market USD price for SOL of $25. • The price oracle's 95% confidence band is +/-$1, i.e. $24-26. The bottom limit of this confidence band is$24, so the confidence band-adjusted market USD price is $24. • Let's say the SOL asset weight on marginfi is 90%. We multiply the confidence band-adjusted market USD price by the asset weight, or$24 * 90%.
• After all adjustments, SOL is priced at $21.60 as collateral. This multi-step approach to asset pricing allows marginfi to conservatively value assets, robust to multiple volatility and price manipulation angles. ## Liabilities as borrows Similarly to assets, liabilities on marginfi are adjusted: • Every liability has a market USD price, as determined by its oracle. This market USD price is the same market USD price as a given token would have when being lent. • Every liability has a confidence band-adjusted market USD price, as determined by the top limit of the price oracle's 95% confidence band. • Every liability has a weighted price, which is the confidence band-adjusted market USD price multiplied by the liability's borrow weight. Here's an example: • Let's say a price oracle supplies a market USD price for SOL of$25.
• The price oracle's 95% confidence band is +/- $1, i.e.$24-26. The top limit of this confidence band is $26, so the confidence band-adjusted market USD price is$26.
• Let's say the SOL LTV on marginfi is 80%. We multiply the confidence band-adjusted market USD price by
$\frac{1}{LTV}$
. In this case,
$\frac{1}{0.80} = 1.25$
.