Health Factor and Liquidation Alerts | Glow Matrix Core Field Notes
Leveraged positions on Solana lending markets introduce vocabulary that centralised exchange users may not recognise. Health factor, loan-to-value (LTV), and liquidation threshold appear together on dashboards — and during fast selloffs, they change faster than newcomers expect.
Health factor defined
Health factor is a ratio computed from your collateral value, borrowed amount, and protocol-specific parameters. Above 1.0, your position is safe under current oracle prices. At or below 1.0, liquidators can repay part of your debt and seize collateral — often with a penalty.
Different protocols colour-code the number differently. We bring printouts of Marginfi, Kamino, and Solend interfaces to terminology sessions so learners match colours to definitions.
Oracle price delays
Solana lending uses price oracles. During volatility, oracle updates may lag spot DEX prices. Your health factor can look safe on the dashboard while market price already implies liquidation. We call this oracle latency risk — a term worth adding to your personal glossary.
Liquidation penalty vocabulary
When liquidation occurs, interfaces show liquidated amount, bonus paid to liquidator, and remaining collateral. The penalty is not hidden; it is labelled — but only if you know where to look in transaction logs.
Why we teach this before leverage
Our risk walkthrough recommends completing the terminology intensive before opening borrowed positions. Understanding health factor without context leads to setting alerts too late. We practice reading sample alert emails and on-chain events so you recognise the sequence: warning → partial liquidation → full wipeout.
This article supports session material; it does not recommend specific leverage levels or protocols.