Monitor your positions with parameters Pool, APY, Position Value, Debt Value, Equity Value, Debt Ratio, Liquidation Threshold, Safety Buffer and Leverage Percentage.
Liquidation happens when the Safety Buffer falls to 0.
- Debt Value is the value of the borrowed tokens
- Position Value is the value of the farmed position (i.e. the value of your LP tokens)
- Debt Ratio is the Debt Value divided by the Position Value
- Equity Value is Position Value minus Debt Value
All values will be displayed in the borrowed token.
In the case of a liquidation, the position would be closed, and the debt repaid. When the tokens you are holding drop in value significantly, then you need to careful about potential liquidation.
Liquidation threshold for the assets are set at the following levels:
- EGLD – 85%
- ASH – 85%
- USDT, BUSD, USDC – 90%