Health and Borrowing Power
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The health meter indicates how close your Prime Account is to insolvency. If your health meter shows 100%, you have not borrowed any funds, and there is no risk of becoming insolvent. If your health meter shows 2%, your Prime Account is on the brink of insolvency. Depending on your constructed portfolio, this most likely means that a small price movement in your held or borrowed assets will make your Prime Account insolvent. The account gets liquidated at 0% health, which depending on the composition of assets has a minimum of 20% collateral ratio.
Tokens available on DeltaPrime have different borrowing powers: If you deposit $100 USDC, you can borrow up to $500 USDC or AVAX before liquidation; but if you deposit $100 PNG, PTP or QI, you can't borrow anything against it. USDC has 5x borrowing power, PNG has 0x.
To understand why different tokens have different weights, please read the safety section.
As your Prime Account is cross-margin, your borrowing power is shared across tokens. For more information on how it's calculated, read the health calculations below. If you instead want a simpler way to interpret the health meter, read the interpretation. Lastly, you can play around with your own health meter in the Health Playground.
