Leverage and health

Using leverage is like borrowing money from the devil… and we’re here to make him sweat

On DegenPrime you can leverage your full DeFi portfolio. Every asset in your account, whether a memecoin, Aerodrome LP token or something else, is part of the collateral you can borrow against. The more collateral you deposit, the more you can borrow, but if you get liquidated you might lose everything.

If your collateral drops compared to your loan, your leverage increases. Once it reaches the max account leverage, your health reaches 0% and you will get liquidated. The total leverage you are allowed in your account depends on 1) how much of each asset you have, and 2) the max leverage of these assets. By combining these, you get your average allowed leverage. You can find the max leverage of each asset in the "Power" column on the Assets page.

However, you can simply track how close you are to liquidation in the Health section of your account. When your health reaches 80%, you have reached 1/5th of your max account leverage. If it reaches 0%, you have reached your max account leverage making the account eligible for liquidation. When this happens, liquidation bots will be allowed access to the account to forcibly repay a part of your loan. This process can require unwinding LP positions as well as swapping assets in your account in order to repay.

You can manage your health by Depositing, Borrowing and Repaying in your Assets page.