> For the complete documentation index, see [llms.txt](https://machfi.gitbook.io/machfi-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://machfi.gitbook.io/machfi-documentation/machfi-guide/how-to-manage-risk-on-machfi.md). # How to Manage Risk on MachFi Each user has visibility into their equity position, which is the net value of all deposited assets less borrowed amounts. The account information also specifies how much of the borrow limit has been used. A user's borrow capacity is a function of both the collateral value of the deposited assets and the borrow limit. The bar reflects the health of the user's account. Should the colored bar reach the end of the spectrum, the user is at risk of liquidation. Hence, it is important for the user to monitor the account's health and maintain a margin of safety by either depositing more assets to increase the collateral or repaying borrowed amounts.