Revert Lend Health Factor
In one sentence
On Revert Lend, health is the comparison between the value of your Uniswap V3 LP position after collateral factors are applied and your outstanding USDC debt. The loan is healthy while the adjusted collateral value stays above the debt, and becomes liquidatable the moment the debt passes it.
What it actually means
Revert Lend is a lending market built for liquidity providers. You deposit a Uniswap V3 LP NFT into a vault and borrow USDC against it in a single transaction. The position stays yours, keeps earning fees while it backs the loan, and stays compatible with Revert automation such as Auto-Range and Auto-Compound. USDC is the only borrowable asset.
Revert's documentation calls the metric loan health rather than publishing a named health factor number, but the comparison is the same one Aave makes: adjusted collateral value on one side, outstanding debt on the other. A loan is healthy while the value of the LP position, after collateral factors, is greater than the debt. Once the debt passes that value, the loan can be liquidated by anyone.
How the collateral value is calculated
Collateral factors are set per token. Stablecoins (USDC, USDC.e, USDT, DAI) sit at 85%, WETH and WBTC at 77.5%, wstETH at 72.5%, and ARB at 60%. A WETH/USDC position is therefore capped at 77.5%, the lower of the two, not the average. Borrowing power is that adjusted value held to a 95% safety buffer, so a fresh loan does not open right at the liquidation line.
The position itself is priced by Revert's V3Oracle, which combines Chainlink price feeds with Uniswap V3 TWAP oracles, each acting as a fallback and cross-check on the other. That is what stops a single manipulated swap from repricing collateral and forcing a liquidation.
Why this is not an Aave health factor
On Aave your collateral is a static balance of tokens. Its value moves for exactly one reason: the price of those tokens. A Uniswap V3 LP position is not a static balance. Its composition changes continuously as price travels through the range, and it stops being a two-token basket at all once price leaves the range.
Uniswap's own documentation states it plainly: as price moves in one direction the provider accumulates more of one asset until the entire position consists of a single asset, and once price is outside the interval the position's liquidity is no longer active and no longer earns fees.
So the health of a Revert Lend loan moves for two reasons at once, not one:
- Price. The tokens inside the position are worth more or less, exactly as on any lending market.
- Range. As price walks through the band, the position rotates out of the asset that is appreciating and into the one that is falling (divergence loss), and past the edge it holds a single token and earns no fees to offset the drift.
That second driver is what catches borrowers out. A WETH/USDC position that goes out of range on the downside is now entirely WETH, fully exposed to further downside, and no longer collecting fees to grow the collateral side. Meanwhile interest keeps accruing on the debt continuously. Both sides of the comparison move against you at the same time, from one event you may not have noticed.
Revert names both drivers explicitly on the collateral side of loan health: pool prices and divergence loss, in both directions. Leverage amplifies both, which is why the docs advise sizing a loop so that the moves you consider normal for the pair still leave loan health intact.
What triggers liquidation
A loan becomes liquidatable when the debt exceeds the collateral value. Liquidation is permissionless: any account can repay the outstanding debt and claim the collateral plus a penalty. Revert publishes an open-source reference bot and runs its own backstop, and liquidators can execute atomically with a flash loan, so very little capital is required to act. In practice a crossed position is taken quickly.
The penalty ranges from 2% to 10% of the debt value, scaling with how far the debt has run past the collateral value. A position caught just over the line costs far less than one left deep underwater. If the position is still worth more than the debt plus the penalty, you receive the remainder. If it is not, you lose the position entirely and the shortfall is absorbed by the pool's reserves.
Keeping a loan healthy
- Repay part of the debt, either in USDC or from the position itself, keeping the remaining debt at or above the vault minimum.
- Add liquidity to the position to grow the collateral side.
- Move the range back around the current price so the position is productive again. Auto-Range does this automatically at a threshold you choose.
- Watch the borrow rate. It floats with pool utilization and accrues continuously, so an out-of-range position quietly loses ground even in a flat market.
Revert Lend runs on Arbitrum, and Revert Lend contracts are also published for Ethereum mainnet and Base.
The collateral underneath a Revert Lend loan is a Uniswap V3 position, and the moment it drifts out of range the fee income stops and the composition of your collateral changes. Otomato detects your Uniswap V3 positions automatically and alerts you when one goes out of range.
Uniswap V3 position alerts →Frequently asked questions
What is the Revert Lend health factor?
Revert's documentation calls it loan health. It is the comparison between the value of your Uniswap V3 LP position after collateral factors are applied and your outstanding USDC debt. While the adjusted collateral value is above the debt, the loan is healthy. Once the debt passes it, any account can liquidate the position.
How is a Uniswap V3 position valued as collateral?
Revert's V3Oracle prices the position using a combination of Chainlink price feeds and Uniswap V3 TWAP oracles, with each serving as a fallback and cross-check on the other. That value is then scaled by the pair's collateral factor, which is the lower of its two tokens (85% for stablecoins, 77.5% for WETH and WBTC, 72.5% for wstETH, 60% for ARB). Borrowing power is held to 95% of the result.
What happens to my LP position if I get liquidated on Revert Lend?
Any account can repay your debt and claim the collateral plus a penalty of 2% to 10% of the debt value, scaled to how far the debt ran past the collateral value. If the position is worth more than the debt plus penalty, you receive the remainder. If it is worth less, you lose the position and the shortfall is absorbed by the lending pool's reserves.
Why does an out of range LP position hurt a Revert Lend loan?
Because both sides of the comparison move against you at once. Out of range, the position holds a single token instead of a balanced pair, so it is fully exposed to that token's direction, and it stops earning fees, so nothing is growing the collateral side. Interest on the USDC debt keeps accruing regardless. Revert names both price and divergence loss as the drivers on the collateral side of loan health.
Related terms
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