# Liquidity Risk

Liquidity risk of the protocol is measured based on Obligation Health, the state of liquidation risk. When Obligation Health exceeds 100%, excess borrowed assets will be automatically liquidated by the bot. Borrow APY’s are set above supply APY’s to maintain a healthy liquidity pool, which assures the utilization limit is not breached. A health factor is attributed to user’s borrowed value to ensure it does not exceed the collateral factor.


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# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.projectlarix.com/risk/liquidity-risk.md?ask=<question>
```

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Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
