The loan-to-value ratio of a collateral asset is the maximum a borrower may borrow per dollar of it. The health factor of an account is the sum over its collateral of value times liquidation threshold, divided by the value of its debt; below one, the account may be liquidated. The liquidation bonus is the discount at which a liquidator receives collateral for the debt it repays.
Quantitative Finance · Glossary
What is Loan-to-value ratio, health factor, liquidation bonus?
Also known as: loan-to-value ratio · health factor · liquidation bonus