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Liquidation Risk Monitor

Track lending positions on Aave v3 and Compound v3 so your team gets time to react before liquidation risk becomes urgent.

Why teams use this monitor

A liquidation monitor gives you one of the clearest operational actions in Web3: add collateral, repay debt, or escalate immediately.

  • Treasury teams using lending markets
  • Bot or strategy operators running leveraged positions
  • Anyone who wants a clear, action-oriented DeFi alert

Quick start in 5 minutes

  1. Start with one wallet and one protocol you already manage operationally.
  2. Keep warning above 1.4 unless you already have automated intervention.
  3. Use a short interval only for risky or actively managed positions.

Configuration notes

FieldWhat to know
protocolOnly Aave v3 and Compound v3 are supported here. Match the protocol to where the position actually lives.
warningHealthFactorThis is your operational notice threshold. It should leave enough time to act.
criticalHealthFactor / dangerHealthFactorKeep them strictly below warning. They are for escalation, not discovery.
rpcUrlFor anything close to liquidation, use a reliable provider. This monitor is only as trustworthy as its reads.

Recommended thresholds and defaults

  • Teams without automation usually start around 1.5 / 1.2 / 1.1.
  • If you have a bot that can top up collateral, you can tighten the gap between warning and critical.
  • Health factor alerts are only useful if someone owns the response path.

Ready-made examples

Personal Aave position

A conservative baseline for a personally managed lending position.

Setup time: 3 min

Best for

Manual operators who want time to react

  • Aave v3 on Ethereum
  • Warning at 1.5
  • Danger at 1.1
{
  "name": "Personal Aave position",
  "walletAddress": "0x742d35Cc6634C0532925a3b844Bc9e7595f2bD18",
  "protocol": "aave_v3",
  "chainId": 1,
  "rpcUrl": "https://eth.llamarpc.com",
  "warningHealthFactor": 1.5,
  "criticalHealthFactor": 1.2,
  "dangerHealthFactor": 1.1,
  "checkIntervalSeconds": 300
}

Treasury borrowing safety

Use a wider safety buffer for organizational capital.

Setup time: 3 min

Best for

Treasury and finance teams with multi-signer response paths

  • Aave v3 on Arbitrum
  • Warning at 1.7
  • 5 min interval
{
  "name": "Treasury borrowing safety",
  "walletAddress": "0x28C6c06298d514Db089934071355E5743bf21d60",
  "protocol": "aave_v3",
  "chainId": 42161,
  "rpcUrl": "https://arb1.arbitrum.io/rpc",
  "warningHealthFactor": 1.7,
  "criticalHealthFactor": 1.3,
  "dangerHealthFactor": 1.15,
  "checkIntervalSeconds": 300
}

Bot-managed leverage position

Tighter thresholds for a position with an automated responder.

Setup time: 3 min

Best for

Teams already running collateral-management automation

  • Compound v3 on Base
  • Warning at 1.35
  • 60s interval
{
  "name": "Bot-managed leverage position",
  "walletAddress": "0x5fC2E691E520bbd3499f409bb9602DBA94184672",
  "protocol": "compound_v3",
  "chainId": 8453,
  "rpcUrl": "https://mainnet.base.org",
  "warningHealthFactor": 1.35,
  "criticalHealthFactor": 1.18,
  "dangerHealthFactor": 1.08,
  "checkIntervalSeconds": 60
}

Alert example

Critical liquidation risk

Liquidation alert: monitored position crossed the critical threshold.
Current health factor: 1.17
Critical threshold: 1.20
Suggested action: top up collateral or repay debt before market volatility pushes the position into danger.

Troubleshooting

Health factor looks wrong or stays empty.

Double-check the protocol and chain. The same wallet can have unrelated positions on different networks.

The monitor is noisy but the position is still safe.

Raise the warning threshold or lengthen the check interval for conservative positions.

The team cannot tell what to do with an alert.

Add a runbook that says who adds collateral, who repays debt, and when to escalate.

Next steps