Alpha Homora V2 leverage and liquidation calculator
Enter your own collateral, the leverage multiplier and the yields you expect. The calculator shows position size, borrowed amount, the starting debt ratio, the approximate price move that reaches the liquidation threshold, and net APY after borrowing cost.
Position size
$3,000
Borrowed
$2,000
Starting debt ratio
66.7%
Approx. adverse move to liquidation
16.7%
Leveraged APY
Net APY on your capital
44.0%
Simplified model: it ignores impermanent loss, swap fees, oracle lag and interest accrual, so real liquidation happens earlier than shown. Leveraged farming can lose all of your capital.
Frequently asked questions about Alpha Homora V2
How is the Alpha Homora V2 debt ratio calculated?
- The debt ratio compares borrowed value to total position value. At 3x leverage your own capital is one third of the position, so debt is roughly 67% of position value at open. As the position value falls, the ratio rises toward the liquidation threshold.
What price drop liquidates a leveraged farming position?
- Approximately the move that pushes position value down to debt divided by the liquidation threshold. At 3x leverage with an 80% threshold, a drop of roughly 17% in position value is enough — and in a liquidity pool that value tracks the pooled assets, not a single token price.
How do I calculate leveraged APY on Alpha Homora V2?
- Net APY is farm APY multiplied by leverage minus borrow APY multiplied by borrowed leverage. At 3x with 20% farm APY and 8% borrow APY the gross figure is 60% minus 16%, so 44% before impermanent loss, swap fees and protocol fees.
Is Alpha Homora V2 safe to use with high leverage?
- Higher leverage shortens the distance to liquidation and amplifies impermanent loss by the same multiplier. Leveraged yield farming can lead to a total loss of capital, and this calculator is an educational simplification, not advice.
Why does the real liquidation happen earlier than the calculator shows?
- The model ignores impermanent loss, swap and protocol fees, oracle lag and interest that accrues on the debt over time. Each of those pushes the debt ratio up, so treat the result as an optimistic upper bound.