Aave Lending Risk Guide

How to review Aave lending risk using health factor, collateral, and liquidation evidence.

Aave positions should be reviewed with asset, chain, supply, borrow, health factor, liquidation threshold, risk parameters, caps, rate changes, oracle assumptions, and final close records.

Fast answer

Aave lending checks need market, supplied asset, borrowed asset, health factor, liquidation threshold, risk parameters, and close records.

Before using Aave, record the market, collateral asset, borrow asset, health factor, liquidation threshold, LTV, supply cap, borrow cap, interest rate mode, oracle, and planned exit.

Reader rule

No guaranteed yield exists; staking, lending, liquidity provision, and reward programs all need lockup, smart-contract, market, liquidity, tax, and withdrawal-risk checks.

Yield checks

What to inspect in Aave records.

Health factor

Aave tracks risk through health factor; positions can be liquidated if it falls too far.

Risk parameters

LTV, liquidation threshold, supply caps, and borrow caps can differ by asset and market.

Oracle exposure

Collateral value depends on price data and market conditions.

Governance changes

Protocol parameters can change, so screenshots need dates and market identifiers.

Source context

Aave V3 documentation describes health factor, liquidation thresholds, and risk parameters.

CSR applies Aave's own risk vocabulary to lending reviews so APY claims stay tied to liquidation and parameter evidence.

Review standard

A reviewable Aave record shows health factor before and after risk changes.

For CSR evidence review, Aave Lending Risk Guide records should preserve asset, chain, protocol, wallet or exchange, reward source, fee, lockup or withdrawal rule, smart-contract exposure, slashing or liquidation rule, transaction hash, and final outcome.

Risk disclosure

Aave Lending Risk Guide is not financial advice.

This guide is educational only. It is not a yield recommendation, staking recommendation, lending recommendation, liquidity provision recommendation, custody recommendation, deposit instruction, tax advice, legal advice, or investment advice. Staking and DeFi strategies can involve market risk, smart-contract risk, slashing risk, liquidation risk, liquidity risk, custody risk, tax risk, and user-error risk.