Lending and Borrowing

Which of a lending market's numbers tells you the most you may borrow against your collateral?

• The loan-to-value (LTV)
• The liquidation threshold
• The utilization rate

Your health factor is 1.5. Your debt stays the same and your collateral's price falls 20%. What is the new health factor?

• 1.3, because it drops by 0.2
• 1.2, because it falls in proportion to the collateral's value
• Still 1.5, because the health factor only changes when you borrow