# Health Factor and Loan-to-Value Ratio (LTV)

There are 3 types of LTV ratios on Amply:

## Max LTV

Max LTV represents the maximum amount you can borrow against your collateral. For example, if vETH has a Max LTV of 80% on Amply, then you can borrow up to $0.80 for every $1 of vETH deposited as collateral. 

## Liquidation threshold

Liquidation threshold is the LTV at which your position becomes eligible for liquidation. For example, if vUSD’s liquidation threshold is 82%, this means that if your debt value (in USD) becomes worth 82% of your vUSD collateral, then your position will be flagged for liquidation. 

Liquidation threshold is higher than max LTV to give users a buffer against getting immediately liquidated. For example, if max LTV and liquidation threshold of vUSD is 80% and 82% respectively, it means that you can borrow up to $80 for every $100 of vUSD deposited. However, should your debt increase to $82 (debt value becomes 82% of the collateral), your debt position will then be flagged for liquidation. 

## Health Factor

The Health Factor is used to represent the healthy status of your overall borrow positions. A Health Factor (HF) below 1 means that your debt is eligible for liquidation. Your borrowings are viable as long as you maintain HF above 1, however we highly recommend you keep it above 3 to account for potential market volatility. <br>

***HF = SUM\[(collateral in USD \* liquidation threshold)] / total debt in USD***

Mitigating Liquidation Risk:

**Monitor LTV**: Regularly check your Health Factor  to ensure it stays above 1 (the point of liquidation 1).

**Maintain Collateral Buffer**: Consider depositing more collateral than the minimum required amount to create a buffer zone against price fluctuations.

**Repay Borrowings**: Repaying part of your loan can help improve your Health Factor and LTV ratio.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.amply.finance/health-factor-and-loan-to-value-ratio-ltv.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.