Free Tool

DeFi Liquidation Price Calculator

Calculate exactly when your Aave or DeFi lending position will be liquidated. Enter your collateral and debt to see your liquidation price, health factor, and risk level.

Collateral

LTV: 80%Liq. Threshold: 83%Liq. Penalty: 5.0%

Borrowed Amount

$

Enter the total USD value of all borrowed assets

Quick Examples

Liquidation Price

Moderate Risk

ETH liquidates at

$2,409.64

31.2% below current price

Health Factor

1.45High risk
Liquidation (1.0)Safe (2.0+)

Position Details

Total Collateral Value$35,000.00
Total Debt$20,000.00
Liquidation Threshold$29,050.00
Current LTV57.1%
Price Buffer$1,090.36

Risk Warnings

  • Moderate risk. Monitor closely during market volatility.

What-If Scenarios

If ETH drops 10%

Price: $3,150.00

HF: 1.31
If ETH drops 20%

Price: $2,800.00

HF: 1.16
If ETH drops 30%

Price: $2,450.00

HF: 1.02
If ETH drops 40%

Price: $2,100.00

LIQUIDATED
If ETH drops 50%

Price: $1,750.00

LIQUIDATED

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How to Use This Calculator

  1. 1
    Select your collateral token

    Choose the asset you're using as collateral (ETH, WBTC, etc.). Each token has different liquidation thresholds.

  2. 2
    Enter your collateral amount and current price

    Input how many tokens you have as collateral and the current market price.

  3. 3
    Enter your total borrowed amount (in USD)

    Input the total USD value of all assets you've borrowed against your collateral.

  4. 4
    Review your results

    See your liquidation price, health factor, risk level, and what-if scenarios for different price drops.

Understanding DeFi Liquidation

In DeFi lending protocols like Aave, you can borrow assets by depositing collateral. However, if the value of your collateral drops too much relative to your debt, your position becomes "undercollateralized" and eligible for liquidation.

During liquidation, other users (called liquidators) can repay part of your debt and claim a portion of your collateral plus a bonus (typically 5-10%). This protects the protocol from bad debt but means you lose money.

The Liquidation Formula

Liquidation Price = Total Debt / (Collateral Amount × Liquidation Threshold)

Health Factor Explained

Health Factor (HF) is the single most important number for DeFi borrowers. It tells you how safe your position is:

≥ 2.0Safe

Your position is healthy with a good safety margin.

1.5 - 2.0Moderate

Monitor closely, especially during volatility.

1.1 - 1.5High Risk

Consider adding collateral or repaying debt.

< 1.1Danger

Liquidation imminent! Take action immediately.

Aave V3 Token Parameters

TokenMax LTVLiq. ThresholdLiq. Penalty
ETH80%83%5%
WBTC73%78%5%
USDC / USDT / DAI77%80%4.5%
wstETH78%81%5%
LINK65%68%7%

* Parameters are for Aave V3 on Ethereum mainnet. Values may differ on other chains.

5 Tips to Avoid Liquidation

1

Keep Health Factor Above 1.5

A 50% buffer gives you time to react during market drops. The higher, the safer.

2

Set Price Alerts

Use apps like CoinGecko or TradingView to alert you when prices approach your liquidation level.

3

Diversify Your Collateral

Using multiple assets as collateral reduces the risk of a single asset crash liquidating you.

4

Keep Emergency Funds Ready

Have stablecoins or ETH available to quickly add collateral or repay debt if needed.

5

Use Stablecoins as Collateral

Stablecoins don't fluctuate in price, so your collateral value stays constant.

Frequently Asked Questions

What is a liquidation price in DeFi?

A liquidation price is the asset price at which your collateralized loan position becomes eligible for liquidation. When your collateral value drops below this threshold, liquidators can repay part of your debt and claim your collateral at a discount (typically 5-10% bonus).

How is liquidation price calculated?

Liquidation price = Total Debt / (Collateral Amount × Liquidation Threshold). For example, if you have 10 ETH as collateral with an 83% liquidation threshold and $25,000 debt, your liquidation price is $25,000 / (10 × 0.83) = $3,012.

What is Health Factor in Aave?

Health Factor (HF) measures the safety of your position. It's calculated as (Collateral Value × Liquidation Threshold) / Total Debt. A Health Factor above 1 is safe, below 1 triggers liquidation. Most users aim for HF greater than 1.5 for safety.

How can I avoid liquidation?

To avoid liquidation: 1) Keep your Health Factor above 1.5, 2) Monitor your position during market volatility, 3) Add more collateral when prices drop, 4) Repay some debt to improve your Health Factor, 5) Use stablecoins as collateral for less price risk.

What happens when I get liquidated?

During liquidation, a liquidator repays up to 50% of your debt and receives your collateral plus a liquidation bonus (5-10%). You keep any remaining collateral minus the liquidated amount. You also lose the liquidation penalty, making it important to avoid liquidation.

What's the difference between LTV and Liquidation Threshold?

LTV (Loan-to-Value) is the maximum percentage you can borrow against your collateral. Liquidation Threshold is the percentage at which your position becomes liquidatable. The difference between them provides a safety buffer. For example, ETH has 80% LTV but 83% liquidation threshold - so you can borrow up to 80%, but won't be liquidated until 83%.