Health Factor
A single number summarizing how close a DeFi loan is to liquidation — above 1 is safe, at 1 you're liquidated.
Health factor is the risk gauge lending protocols display for a borrowing position: it combines your collateral, its liquidation thresholds, and your debt into one figure. Above 1 the position is safe; when it hits 1, liquidation triggers.
It moves constantly with market prices — a health factor of 1.1 can drop to 1.0 in a single sharp candle, wiping out collateral at a penalty. Prudent DeFi borrowers treat anything under ~1.5 as dangerous and keep repayment funds ready. Watching it is not optional: in volatile markets, positions are liquidated in seconds while owners sleep.