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Education only · not financial, tax or legal adviceCanadian facts checked 2026-10-31 · a MITEY site
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Tool · Borrowing & yield

Liquidation explorer

See your health factor, liquidation price and how far the price can fall before a loan is liquidated.

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Mitey the yeti weighing a coin in each paw, with a chart
Mitey says: Plan your top-up before the market moves, not while gas fees are spiking.
Set by the protocol for each collateral.
Include interest accrued so far.
Used for the top-up / repay suggestion.
Health factor
1.6
Some cushion
Collateral value
$8,000
Loan-to-value
50.0%
Liquidation price
$2,500.00
Price can fall
37.5%
Borrowing headroom
$2,400
To reach HF 2: add
0.5 units
…or repay
$800

Health factor as the price falls

−0%1.6
−10%1.44
−20%1.28
−30%1.12
−40%0.96
−50%0.8
−60%0.64
−70%0.48

How this tool works

Over-collateralized lending protocols let you borrow against collateral. Each collateral type has a liquidation threshold. The health factor is collateral value × threshold ÷ debt. When it falls below 1, part of your collateral can be sold to repay the loan, usually with a penalty.

The liquidation price is the collateral price at which the health factor hits 1: debt ÷ (units × threshold). The chart shows the health factor as the price falls in steps.

Example
2 units at $4,000, threshold 80%, debt $4,000
HF = 8,000 × 0.80 ÷ 4,000 = 1.60
Liquidation price = 4,000 ÷ (2 × 0.80) = $2,500 (a 37.5% fall)

Limits

  • Assumes one collateral asset and stablecoin debt valued at $1 CAD-equivalent; real positions may have several assets and accruing interest.
  • Interest makes debt grow over time, which lowers the health factor.
  • Protocols set their own thresholds and penalties; check the one you use.

Questions people ask

What is a good health factor?

There is no universal safe number. The closer to 1, the smaller the price move that triggers liquidation. Many borrowers keep a larger cushion and plan how they would add collateral or repay quickly in a fast market.

What happens when a DeFi loan is liquidated?

Liquidators repay part of your debt and receive part of your collateral at a discount set by the protocol. You keep the borrowed funds but lose that collateral plus the penalty.

Does a liquidation have tax consequences in Canada?

Possibly: collateral sold in a liquidation may be a disposition. CRA has not published DeFi-specific guidance as of 2026-10-30, so keep records and ask a tax professional. See DeFi transactions and tax.

Sources and dates

Education only. Nothing on this page is financial, investment, tax or legal advice, or a recommendation to buy, sell, stake, lend or borrow any crypto-asset. Crypto-assets can lose some or all of their value and are not covered by CDIC. Canadian rules change: check the dated sources above and talk to a qualified professional about your situation. Full disclaimer.