# Health Factor The **health factor** is an important metric that represents the safety level of your loan based on your collateral. It is calculated as the ratio of your collateral value to your borrowed amount. * **Healthy Loan**: A high health factor indicates that your loan is safe and your collateral can cover the borrowed amount. * **Risky Loan**: A low health factor suggests that your loan is at risk of liquidation, meaning your collateral could be sold to repay the loan if the health factor drops too low. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.lendbit.finance/borrowing-on-lendbit/loan-to-value-ltv-ratios/health-factor.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.