How to Avoid Liquidation on Aave: 7 Practical Strategies

Aave liquidations are permanent and costly — the protocol takes a 5–15% liquidation bonus from your collateral. Here is how to protect your position.

1. Keep health factor above 1.5

Set a personal rule: if it drops below 1.5, act immediately. Check all your positions across networks in one place with the calculator.

2. Use stablecoin collateral for stablecoin loans

Borrowing USDC against USDT makes your health factor almost immune to market volatility.

3. Watch your collateral prices

Set a price alert for every collateral asset. When it drops ~10%, check your health factor.

4. Keep reserve capital ready

During flash crashes gas spikes and time is short. Keep funds on the same network to top up collateral within minutes.

5. Spread positions across networks

Smaller positions on Arbitrum or Base have near-zero gas, so you can react fast — unlike a single large Ethereum position.

6. Check all networks, not just one

Monitoring multiple networks manually is error-prone. The calculator checks all supported networks from one address.

7. Use Telegram alerts

Set a threshold around 1.7 so you get warned before the danger zone. Connect Telegram to enable alerts.

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