Credit Account collateral basket
Each collateral asset contributes value × its own liquidation discount to Total Weighted Value (TWV), and separately accrues its own quota interest rate for occupying limited pool capacity.
| Value ($) | Liquidation discount (%) | Quota rate APY (%) | |
|---|---|---|---|
| Asset A | |||
| Asset B |
Debt & time horizon
Basket & carrying-cost breakdown
| Item | Value |
|---|
Two interest streams, one account
Gearbox blends multi-asset collateral into one weighted Health Factor the way a multi-protocol lending comparison blends rates across markets, but the quota interest layer has no equivalent in single-collateral markets like the ones behind the Morpho adaptive-curve IRM calculator. Compare the resulting leverage against the leverage looping calculator, check your buffer with the margin ratio calculator, and see an oracle-free alternative risk model in the Ajna LUP & Threshold Price calculator.
Why one Credit Account needs a weighted health factor
Most onchain leverage happens one asset at a time: deposit ETH, borrow USDC, watch a single loan-to-value ratio. Gearbox Protocol's Credit Accounts work differently — a trader opens one account, deposits margin, and borrows a lump sum that can then be deployed across several assets simultaneously inside that same account: an LP position, a staked derivative, a stablecoin leg, whatever the strategy calls for. Because the account can hold a genuinely mixed basket, a single flat liquidation threshold would either be too conservative for the safer assets in the mix or too permissive for the riskier ones. Gearbox instead assigns each collateral asset its own liquidation discount and sums value × discount across the whole basket to get Total Weighted Value (TWV). Health Factor is then TWV divided by total debt including accrued interest — the same "is my collateral enough to cover my debt" logic as any money market, just computed as a value-weighted blend across however many assets the account actually holds, rather than one ratio for one token.
The second piece is quota interest, and it solves a different problem: pool capacity. Each asset that can serve as Credit Account collateral has a quota — a limit, set through GEAR governance votes, on how much of that asset's value the whole protocol will let count toward TWV at once. This exists because letting unlimited amounts of any one collateral back debt would concentrate risk in whatever token happens to be popular that week. Occupying quota is not free: it accrues its own interest rate, paid on the value of collateral consuming that asset's quota, completely independent of the ordinary borrow APY charged on the debt itself. A Credit Account therefore carries two simultaneous, separately priced costs — rent on the money borrowed, and rent on the shelf space that collateral occupies — which is a genuinely different structure from a single borrow-APY line item on a typical lending dashboard.
Neither number moves the other directly: quota interest does not enter the Health Factor formula, so it cannot mechanically trigger a liquidation by itself. But left unpaid, accrued interest of either kind ultimately adds to what the account owes, shrinking the same cushion that TWV is trying to protect — which is why this calculator reports both the blended Health Factor and the combined carrying cost side by side, so neither cost stays invisible while you're only watching collateral prices.
FAQ
What is a Gearbox Credit Account and how is its health factor calculated?
A Gearbox Credit Account is a single onchain account that pools borrowed funds with a trader's own collateral, which can hold several different assets at once. Health Factor is Total Weighted Value divided by total debt including accrued interest: Hf = TWV / (debt + accrued interest). TWV sums every collateral asset's dollar value multiplied by that specific asset's own liquidation discount, so a basket of ETH, stables, and a long-tail LP token each contribute differently to the same account's safety margin. The account can be liquidated once Hf falls below 1.
What is quota interest and how does it differ from the base borrow rate?
In Gearbox V3, each collateral asset has a quota — a governance-set limit on how much of that asset's value can count toward a Credit Account's Total Weighted Value at any time. Holding collateral that consumes quota costs a separate quota interest rate, charged per asset per year on the quoted value, on top of the ordinary borrow APY charged on the debt principal. A Credit Account therefore pays two independent interest streams: base interest on what was borrowed, and quota interest on what collateral is actively occupying limited pool capacity.
Why does weighting each collateral asset separately matter for risk?
Single-collateral lending markets apply one loan-to-value ratio to one asset. A Credit Account can hold several assets simultaneously, each with its own liquidation discount reflecting that asset's individual volatility and liquidity, so a basket that is heavy in a high-discount stable asset can safely support far more debt than the same dollar value concentrated in a low-discount volatile token. The blended Health Factor is a value-weighted average of those individual discounts, not a single flat ratio, which is why two accounts with identical total collateral value can have very different liquidation risk.
Can a Credit Account become liquidatable purely from quota interest accruing, with no price movement?
Not directly — quota interest is a separate carrying cost, not part of the TWV or the debt used in the Health Factor formula itself, so it does not mechanically move Hf on its own the way base borrow interest does by growing the debt side of the ratio. But it steadily erodes a trader's net return, and if that interest cost accumulates against the debt principal (as unpaid interest typically does), the shrinking cushion combines with any adverse price move to push Hf below 1 faster than the borrow rate alone would suggest — an unpriced drag that is easy to overlook when only watching collateral prices.
How does this differ from a typical Aave or Compound-style health factor?
Aave and Compound compute health factor from one deposited collateral type against one borrow, using a single liquidation threshold for that asset. Gearbox Credit Accounts are designed for onchain leverage across an entire multi-asset position — a single account might hold LP tokens, staked assets, and stablecoins simultaneously while borrowing against the blended basket — so the health factor calculation must weight each asset's contribution separately, and the quota system adds a second, asset-specific fee layer that has no direct equivalent in single-collateral money markets.