Tips to Avoid Liquidation

  • Regular Monitoring: Keep an eye on the market values of both your collateral and the borrowed currency. Be mindful of how accruing interest impacts your overall debt. (See: Monitoring Your Health)

  • Create a Buffer: Consider borrowing below the maximum allowed to give yourself a cushion against market changes and interest accumulation.

  • Increase Your Collateral: If market movements put your borrowings at risk of exceeding the platform's safe threshold, adding more collateral can help secure your position.

  • Reduce Your Borrowings: Lowering the amount you've borrowed, either regularly or in anticipation of market volatility, can help keep your borrowings within a safe range against your collateral.

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