Level 6 · What happens if Health Factor drops too far
What is liquidation?
Liquidation is Aave's process for repaying part of a risky borrow and taking some collateral.
It is not Ronnie closing your account. It is an open protocol mechanism.
A liquidator repays a portion of debt and receives collateral plus a bonus defined by Aave.
You can reduce liquidation risk by repaying debt or adding collateral. This app only explains those options; it does not execute them.
Ronnie's Healthy / Watch / Risky / Critical labels are Ronnie's interpretation of Health Factor, not official Aave grades, and never a claim that a position is absolutely safe.