> For the complete documentation index, see [llms.txt](https://justlend.gitbook.io/untitled/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://justlend.gitbook.io/untitled/faq/how-to-understand-your-risk-value.md).

# How to understand your risk value?

Risk value is an indicator of the health of the current portfolio. Collaterals will be liquidated when the risk value reaches 100.

Formula: Risk value = Total borrow ÷ Borrow limit x 100

Our recommendations for users at different levels of risk are as follows:

| Range  | Levels of risk      | Recommendations                                                                                                             |
| ------ | ------------------- | --------------------------------------------------------------------------------------------------------------------------- |
| 0-35   | Low Risk            | Healthy portfolio, eligible for loans.                                                                                      |
| 35-60  | Medium Risk         | Healthy portfolio overall, eligible for extra loan, but with caution.                                                       |
| 60-80  | High Risk           | Portfolio faces risk of liquidation, and you are advised to add collateral or pay off part of your loans.                   |
| 80-100 | Extremely High Risk | <p>Collaterals are about to be liquidated, and you are advised to add collateral or pay off part of your loans.</p><p> </p> |