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The Finance Base
Aave V3

How to Check Aave V3 Collateral Prices and Liquidation Thresholds Before Borrowing

A practical guide to checking Aave V3 oracle prices, collateral eligibility, reserve parameters, and account health before you borrow.

By TheFinanceBase Team 4 min read
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Before borrowing on Aave V3, verify the exact network and market, confirm your collateral is eligible and enabled, and check that market’s oracle valuation, loan-to-value (LTV), and liquidation threshold. Then review your account’s available borrow and health factor. These figures vary by market and can change, so a token’s settings on another chain—or in an older guide—are not a substitute.

Where to check the figures

In the Aave app, select the network and V3 market you intend to use, then inspect the relevant asset and your account. Make sure the displayed market matches the network where your assets and debt will be held. For programmatic checks, Aave’s account and collateral views expose market-specific valuations and account metrics; the protocol’s documentation describes these views and their outputs in the View Contracts documentation.

Aave’s reserve documentation explains that parameters vary between markets and can change over time. Treat the values shown for the selected market at the time you plan to borrow as the relevant ones, rather than carrying forward a number from another deployment. See Aave’s reserve documentation.

Check the collateral before borrowing

Confirm eligibility and account status

There are two separate checks: whether the reserve is eligible to serve as collateral, and whether your supplied balance is currently enabled as collateral in your account. Aave’s market operations documentation distinguishes reserve eligibility from the account-level collateral setting; governance can disable a reserve for new collateral use. See Market Operations.

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Check the oracle valuation

Aave uses its Price Oracle to value reserves for protocol calculations. The technical getCollateralFullInfo view includes the asset unit, current oracle price, raw balance, and balance expressed in the market’s base currency. That valuation is more relevant to your Aave position than a standalone exchange ticker, which may not reflect the value Aave applies. The view is documented in Aave’s View Contracts reference.

Read the reserve’s risk settings

For the exact collateral reserve, check its LTV and liquidation threshold, and whether borrowing is enabled for the asset you plan to borrow. Also check relevant supply or borrow caps and whether an applicable E-Mode category changes the parameters for your collateral-and-debt combination. Aave’s risk parameters documentation describes these settings; the reserve documentation notes that they may differ by market and change over time.

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LTV and liquidation threshold are not the same

LTV limits how much you can borrow against collateral when opening or increasing a position. The liquidation threshold is the point used to determine when a position becomes eligible for liquidation as its collateral value and debt change. The gap between them provides a margin; it is not a reason to borrow up to the liquidation threshold. Definitions and parameter context are in Aave’s risk documentation.

Use the account-level health factor, not a one-asset estimate

Aave defines health factor as:

Health Factor = (Total Collateral Value × Weighted Average Liquidation Threshold) ÷ Total Borrow Value

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With more than one collateral asset, the liquidation threshold is weighted by collateral value; it is not a simple average of the assets’ thresholds. Account views report metrics such as total collateral, total debt, available borrowing, current liquidation threshold, LTV, and health factor in the market’s base currency. If you have multiple collateral or debt assets, use those live account-level values rather than estimating from a single reserve.

Aave’s help-page illustration uses $10,000 in ETH collateral at an 80% liquidation threshold and a $6,000 GHO borrow, producing a health factor of 1.333. This is an illustration, not a recommended borrowing level. A health factor below 1 means the position may be liquidated. See Aave’s Health Factor & Liquidations help page.

Account for price moves and accruing debt

Health factor can fall if collateral loses value, the borrowed asset rises in value relative to collateral, or interest increases the debt. A value only slightly above 1 leaves little room for those changes. Aave says there is no universally safe health factor because appropriate margin depends on the volatility and correlation of the assets involved.

Before borrowing, consider how the position would respond to a collateral price decline, a rise in the debt asset, and interest accruing over time. Aave’s help page names DeFi Simulator for simulating health-factor changes; any simulator is an aid, not a guarantee of future prices or liquidation outcomes.

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Liquidation mechanics and thresholds

Aave’s current help content describes these liquidation rules: when health factor is above 0.95 and both collateral and debt are at least $2,000, a liquidator may repay up to 50% of total debt. Up to 100% may be liquidated when health factor is 0.95 or below, or when either collateral or debt is below $2,000. A partial liquidation must leave at least $1,000 of both collateral and debt; otherwise the position must be fully cleared. These are operational details stated on Aave’s help page, not universal rules for every lending protocol. Confirm the applicable deployment’s implementation before relying on them. See Aave’s liquidation help page.

Pre-borrow checklist

  1. Select the exact network and Aave V3 market. Verify the app or query is pointed at the deployment you intend to use.
  2. Check collateral eligibility and status. Confirm the reserve can be used as collateral and that your position has collateral enabled.
  3. Verify the oracle price and base-currency value. Use Aave’s market valuation, not only an external ticker.
  4. Inspect the applicable reserve settings. Check LTV, liquidation threshold, borrow availability, caps, and any relevant E-Mode treatment.
  5. Review your live account figures. Check total collateral, debt, available borrow, current liquidation threshold, and health factor.
  6. Consider adverse changes before submitting. Account for collateral falling, debt value rising, and interest accruing; do not treat the liquidation boundary as a target.

For account and reserve concepts, consult Aave’s view contract reference, risk parameters, and reserve documentation. Values are market-specific and time-sensitive, so check the selected market immediately before borrowing.

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