Amply Finance
  • Introduction to Amply
    • What is Amply Finance?
    • Why Amply Finance?
    • How does Amply Finance Work?
  • Tokenomics
    • Tokenomics Details
    • preAMP Conversion Scheme
    • AMPLY Token Offering
  • Using Amply Finance
    • How to use Amply Finance
    • Supplying Tokens
    • Borrowing Assets
    • Repaying Loans
    • Withdrawing Assets
    • Claiming $AMPLY Rewards
    • Staking AMPLY
      • Withdrawing AMPLY
      • Upgrade AMPLY
      • Claim AMPLY rewards
    • Converting preAMP to AMPLY
    • Claiming vETH and vUSD Rewards
  • Efficiency Mode
    • Activating eMode
    • Using Collateral and Borrowing Tokens in eMode
    • Repaying Debt and Withdrawing Collateral in eMode
    • Deactivating eMode
  • Interest Rate Model
    • Borrow interest rate
    • Supply rate
  • Health Factor and Loan-to-Value Ratio (LTV)
  • Liquidations
    • Liquidation Simulator
  • Yield Opportunity
  • Yield Matrix
    • Using the Yield Matrix
  • Asset Listings and Risk Management
    • Asset Listing Criteria
    • Supported Assets and Parameters
  • Information
    • Smart Contract Addresses
    • Paymaster
    • Amply Finance Terminology
    • Contact Us
    • Brand Assets
    • Audits
    • Risk Disclosure
    • AMA Transcript
Powered by GitBook
On this page
  • Why Use the Liquidation Simulator?
  • How to Use the Liquidation Simulator
  • Notes
  1. Liquidations

Liquidation Simulator

PreviousLiquidationsNextYield Opportunity

Last updated 3 months ago

The Liquidation Simulator on Amply Finance helps you assess your risk exposure before borrowing. By simulating different collateral and debt scenarios, you can better understand your liquidation thresholds, leverage, and overall risk profile.

Why Use the Liquidation Simulator?

  • Avoid unexpected liquidations by testing different borrowing scenarios.

  • Optimize your borrowing power without overleveraging.

  • Gain full visibility into potential risks before executing transactions.

How to Use the Liquidation Simulator

Accessing the Simulator

  1. Navigate to the Amply Finance Dashboard

  2. Click on the Simulation Calculator to start a new simulation.

Selecting Collateral & Debt Assets

  1. Choose up to 6 collateral assets from the available options.

  2. Choose up to 6 debt assets for borrowing.

  3. Enter the amount of each selected collateral and debt asset in token terms.

  4. The system will automatically convert these values to USD equivalent.

Understanding Your Risk

  1. Once inputs are entered, Amply will automatically calculate:

  • Total Collateral Value (in token and USD terms)

  • Total Debt Value (in token and USD terms)

  • Average Liquidation Price (Estimated collateral price that would trigger liquidation)

  • Health Factor (Overall risk assessment of your position)

  • Liquidation Buffer % (Your safety margin before liquidation)

  • Leverage Ratio (The amplification of your position. Collateral/Debt)

  • Effective Loan-to-Value (LTV) %

Notes

  • If your Health Factor is low (close to 1), consider reducing borrowed assets or increasing collateral.

  • If your Leverage Ratio is high:

    • Means you're borrowing a significant amount compared to your collateral.

    • Amplifies potential gains if prices rise but also increases liquidation risk if prices fall.

  • If your Leverage Ratio is low:

    • Means you're borrowing a smaller amount compared to your collateral.

    • Reduces potential gains but also significantly reduces the risk of liquidation

      • Experiment with different collateral and debt combinations to find an optimal borrowing strategy.

      • Assess whether your risk appetite allows for potential market volatility.

  • eMode (Efficiency Mode): Allows borrowing with higher LTV when using correlated assets (e.g., stablecoins)