The algorithm takes into account each integrated protocols’ maths, to count the potential influence of the liquidity on the borrowing rates and utilisation, and keep user’s positions at the lowest borrowing rate.
The health factor determines the risk of liquidation for a debt position. REBALANCE monitors it and always notifies users via selected notifications channel to avoid liquidation.
When the market is volatile, REBALANCE can always keep the position, on user’s behalf, automatically adding 10% of extra-collateral to it. If the liquidation happens, REBALANCE still keeps it cheaper than any other protocol.