The liquidation line in lending, when I’m three steps away from the red line, I usually consider myself already on the edge... Don’t wait for “close enough,” the market loves to give you a nudge right when you’re almost there. Do three things first: clarify your parameters (what oracle price are you using, how is the discount calculated, how often is the health factor refreshed), then immediately reduce leverage (pay off some debt, or add some collateral—whichever costs less friction), and finally turn on automation (set alerts or auto-rebalance so you don’t have to manually watch the market). Recently, there’s been talk about rate cut expectations, the US dollar index moving in sync with risk assets—basically, correlation can change at any time, so don’t treat macro as a talisman. The result is probability, not destiny: I’d rather pay a little more interest and earn a little less than leave “liquidation” to luck.

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