Users can view all the important information on Your Info section of the Dashboard page by clicking on the dropdown arrow of a particular position (right side of the image below).
Once users have an open position, users need to monitor your positions and manage it to prevent liquidation. Liquidation takes place when debt ratio = 100%. Debt ratio = borrowing credit/collateral credit. See more details about borrowing and collateral credit here.
To do manage your positions, including Add, Remove, Harvest, and Close, users can go to Your Positions page.
Add: Add action will allow users to add more collateral to the existing position. Users would want to do this to keep the debt ratio below 100%.
Remove: Remove action will allow users to partially withdraw the collateral from a position as well as payback the loans.
If you withdraw the collateral (without paying back the loans), your debt ratio will increase, as your borrowing credit remains the same, but your collateral credit has decreased.
If you payback the loan (without withdrawing the collateral), your debt ratio will decrease, as your borrowing credit has decreased and your collateral credit has remained the same.
Harvest: Harvest action will allow users to claim the farmed tokens.
Close: Close action will close the whole position, automatically repay all the debt, and return users the remaining assets.
Leveraged positions (more than 1x) are subject to liquidation when Debt Ratio = 100%.
Debt Ratio = borrowing credit/collateral credit.
Alpha Homora v2 uses the concept of collateral credit and borrowing credit to determine how much leverage a user can get given the asset(s) supplied as collateral and the asset(s) borrowed. With this mechanism, Alpha Homora v2 can set parameters according to the volatility of each asset and set different buffer parameters for different assets to ensure the security of the protocol.
Note 1: Collateral credit and borrowing credit in Alpha Homora V2 are not the same concept as loan-to-value (LTV) used in other lending protocols.
Collateral credit: Each asset has its own collateral credit value. A collateral credit value determines how much credit is gained from collateralizing an asset. Note: collateral is only taken from the liquidity supplied on step 1 when opening a farming position.
Borrowing credit: Each asset also has its own borrowing credit value. A borrowing credit value determines how much credit (received from collateralizing an asset) is consumed from borrowing an asset.
The collateral credit and borrowing credit of an asset depend on the volatility of the asset price. If an asset is volatile, the collateral credit will be low and the borrowing credit will be high. For instance, if a user supply ETH as collateral to borrow DAI, he would be able to borrow more DAI than if he were to otherwise supply ETH to borrow YFI (or any less stable asset).
Note 2: Alpha Homora V2 operates in a completely different way than Alpha Homora V1. Thus, users cannot use the same Debt Ratio concept in V1 to compare with V2.
Note 3: Even when Debt Ratio = 100% (position is at liquidation risk), the position is not yet underwater. Alpha Homora V2 has another buffer layer to allow for more price volatility before the position becomes underwater if not yet liquidated.
To keep your debt ratio below 100% to prevent putting your position at liquidation risk, you would want to
Add collateral (Add button in Your Positions page)
Payback loans (2nd step under Remove button in Your Positions page)
Users can also close their positions (Close button in Your Positions page). This will close the whole position, automatically repay all the debt, and return users the remaining assets.