Basic Explanation of Operation Module

• Your Deposits / Your Borrowings: Users can view the combined value of cryptocurrencies deposited and borrowed by themselves in USD, with the option to display how the funds are distributed in pie charts for each category.

• Health Factor: The health factor is a numerical representation of the security of borrowing and is determined by the assets used as collateral and the borrowed amount within the account.

If the health factor falls below a certain threshold (Health Factor ≤ 1), it indicates that the collateral held in the account is insufficient to cover the repayment of the borrowed amount and associated interest.

In such situations, the account is subject to liquidation. Users have the option to enhance their health factor by adding more assets as collateral or repaying some of the borrowed amount, mitigating the risk of automatic liquidation, and simultaneously expanding their maximum borrowing capacity of the account.