Aave v3 Polygon Risk Checker — Key Parameters
Reference for the Aave v3 Polygon risk checker: LTV, liquidation threshold, liquidation bonus, and the health factor formula, with live on-chain values.
Loan-to-Value (LTV)
The LTV determines how much you can borrow relative to your collateral. On Aave v3 Polygon, LTV varies by asset: USDC has 82.5% LTV, WETH has 82.5%, and WBTC has 73%. This means for $10,000 of ETH, you can borrow up to $8,250.
Liquidation Threshold
The liquidation threshold is the point at which your position becomes eligible for liquidation. For most assets on Polygon Aave v3, this is 83-88%. When your borrow amount exceeds this percentage of your collateral, liquidation can occur.
Liquidation Bonus
The liquidation bonus is the discount liquidators receive. On Aave v3 Polygon, this ranges from 5-10% depending on the asset. This bonus is your penalty — it's value you lose.
Health Factor Formula
Health Factor = (Total Collateral × Liquidation Threshold) / Total Borrowed. When HF < 1.0, liquidation can occur. Guardian Rescue helps when your HF drops below 1.05.