How Can I Avoid Getting Liquidated?

You avoid liquidation by never borrowing as much as the app will let you. Every lending protocol, Aave included, shows a maximum - and that maximum is the edge of the cliff, not a recommendation. Borrow around half of it, keep an eye on the health factor, and get told before the price arrives rather than after.

What actually keeps a position safe?

Four habits, in rough order of how much they help:

• Borrow small. A health factor of 2 or more means your collateral can roughly halve before anything happens. That single choice prevents most liquidations.
• Know your liquidation price and set a phone alert well above it - 15% is a fair gap. Alerts work while you sleep; refreshing the app does not.
• Keep a repayment ready. Park some stablecoins in the same wallet, on the same network, so topping up takes one transaction and not a bridge and an exchange withdrawal.
• Prefer calm collateral. A loan backed by ETH or BTC behaves far better than one backed by a token that can fall 40% in a day.

What do I do when the warning comes?

Two moves, and either works. Repay part of the debt, which shrinks the bottom of the fraction. Or deposit more collateral, which grows the top. Repaying is usually the better choice in a falling market, because adding more of an asset that is dropping only buys a little time. Do it early: in a sharp sell-off, networks get congested and fees spike exactly when everyone is trying the same thing.

What should I avoid?

Borrowing against a token to buy more of that same token - a loop that unwinds violently in both directions. Leaving a position untouched for months, since interest alone eats your cushion. And treating a stablecoin as immovable: a coin that slips even a few cents against its peg can change your numbers fast.

Before your next borrow, open the Aave app and type an amount that puts the health factor at 2, then use that figure instead of the maximum offered. It is a slower way to use leverage, and it is the reason some positions survive the weeks that close others. Work out your liquidation price first, and pick a target health factor you can actually hold to.