In Genesis Pool, we have an interface called "My position," which is a dashboard indicating the healthiness of your positions.
When you participate as a borrower, you should watch out for your risk ratio.
The higher your risk ratio is, the riskier your position becomes.
We have suggested a safe level that your risk ratio should not exceed.
If your risk ratio goes beyond this number, a slight decrease in your collateral value or increase in your borrowing power could force your position to be liquidated.
The pool will expose users' position for liquidation once the users's risk ratio > 100%. Our UI bar shows this 100% threshold at its right end, conveying that the user's position liquidates once it reaches this threshold.
We suggest the safe threshold on our UI to be at 80% risk ratio, reminding users to pay attention to their position once exceeding this level. However, users can increase their position up to 95% risk ratio.
There are three ways to manage the debt position when it is at risk of liquidation:
Close the position
The borrowing position can be closed by repaying all outstanding debt that you owe to Genesis Pool. Once you pay it all off, the risk ratio gauge will decrease to 0%.
You could also repay only a part of your debt. The repayment will be reflected in a form of a smaller risk ratio.
Add more collateral
Supplying more assets as collateral will increase your borrowing power. Hence, lower risk ratio.