QuiverDocs / Vaults
Vaults
A vault is a single-owner position holding one collateral asset against one qUSD debt balance, tracked as clean ERC-20 accounting.
Isolation
Each vault is fully isolated from every other. Risk in one market never spills into another, and you can run multiple vaults across different collateral types side by side.
Health factor
Health factor measures how far a vault is from liquidation:
◆
Health factor = collateral value × liquidation threshold ÷ debt. Above 1.0 is safe; below 1.0 the vault can be liquidated.
| Collateral value | Debt | Liq. threshold | Health factor |
|---|---|---|---|
| $3,500 | 2,000 | 82% | 1.44 ✓ |
| $3,500 | 2,600 | 82% | 1.10 ⚠ |
| $3,000 | 2,600 | 82% | 0.95 ✗ |
Liquidation price
Your liquidation price is the collateral price at which health factor reaches 1. Keeping a healthy buffer above it is the best defense against volatile markets.