# Health Factor A health factor measures the value of collateral in relation to the amount of a loan. A higher health factor indicates a lower risk for the borrower. A loan with more collateral than the value of the loan is considered over-collateralized, which reduces the risk of [Liquidation](/docs/protocol/liquidations.md). \ \ The health factor is calculated by dividing the value of the collateral by the amount of the loan. For example: a loan with a collateral value of $150 coupled with a debt of $100, produces a health factor of 1.5\ \ For users who are unfamiliar with health factors, but familiar with the term loan-to-value:\ a health factor of 1.5 is the same as a loan-to-value of 0.67. --- # 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://hyperstable.gitbook.io/docs/protocol/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.