> For the complete documentation index, see [llms.txt](https://flipper-3.gitbook.io/flipper-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://flipper-3.gitbook.io/flipper-docs/flipper-trading/health-factor.md).

# Health Factor

## <mark style="color:$primary;">Overview</mark>

Health Factor is a real-time indicator of the overall safety of a leveraged position.

A higher Health Factor generally indicates a healthier position.

A lower Health Factor indicates that the position is moving closer to Stop-out Protection or external liquidation thresholds.

## <mark style="color:$primary;">Health Factor Changes Based On</mark>

* Market price
* Position size
* Leverage
* Available collateral
* Funding payments
* Margin requirements

## <mark style="color:$primary;">If Your Health Factor Drops</mark>

**Consider:**

* Adding collateral
* Reducing leverage
* Closing part of the position
* Closing the entire position

{% hint style="warning" %}
**Important** Monitoring your Health Factor can help reduce the likelihood of stop-out or liquidation.
{% endhint %}