> ## Documentation Index
> Fetch the complete documentation index at: https://docs.jup.ag/llms.txt
> Use this file to discover all available pages before exploring further.

# Liquidation Calculator

> Simulate liquidation risk on pegged vaults within Jupiter Lend

The [Liquidation Calculator](https://jup.ag/lend/calculator) is a risk analysis tool for <Tooltip tip="A vault where the collateral and debt assets are correlated, priced using on-chain redemption rates rather than market prices.">pegged vaults</Tooltip> on Jupiter Lend. It lets you simulate how borrow rate changes affect your position over time and estimate how long it would take for a position to reach liquidation under different market scenarios.

In pegged vaults, the collateral and debt assets are correlated and priced using on-chain redemption rates. This means market price fluctuations do not directly cause liquidations. Instead, the main liquidation risk comes from the Borrow APY exceeding the Supply APY for a sustained period, which gradually pushes the <Tooltip tip="The status that shows how close your debt-to-collateral ratio is to the Liquidation Threshold.">Position Health</Tooltip> toward the <Tooltip tip="The debt-to-collateral ratio at which your position becomes eligible for partial liquidation.">Liquidation Threshold</Tooltip>.

The Calculator helps you visualize this dynamic before entering a position. For definitions of all terms used here, see [Protocol Details](/user-docs/earn/lend/protocol-details).

## How to use the Calculator

<Steps>
  <Step title="Select a trading pair">
    Use the Trading Pair dropdown to choose the pegged vault you want to analyze (e.g., JupSOL/SOL, JUICED/USDC, INF/SOL).

    The Current Vault State panel displays the live parameters for that vault: Supply APY, Borrow APY, Liquidation Threshold, and Final APY.
  </Step>

  <Step title="Set your leverage">
    Use the slider to choose a leverage level. The calculator shows the corresponding LTV and safety status. The maximum leverage is capped at the vault's Liquidation Threshold.
  </Step>

  <Step title="Choose a scenario">
    Select one of three borrow rate scenarios to simulate:

    * **Standard Market** — Uses the current borrow rate (1x). Shows what happens if rates stay where they are.
    * **Moderate Peak** — Simulates the borrow rate doubling (2x). Represents a period of elevated borrowing demand.
    * **Max Peak** — Simulates the borrow rate tripling (3x). Represents an extreme rate spike.
  </Step>

  <Step title="Read the Liquidation Timeline">
    The chart on the right shows how the Borrow APY evolves over time under the selected scenario and how long it would take for the position to reach liquidation.

    * **Current Borrow rate** — The rate right now, with its estimated days to liquidation.
    * **Peak Borrow rate** — The simulated peak rate, with its estimated days to liquidation.

    If the timeline shows "Never", the position would not reach liquidation under that scenario within the selected time range.

    You can adjust the time range (up to 3 years) to view longer or shorter projections.
  </Step>
</Steps>

## What it shows

The Calculator displays the following for your selected vault and leverage:

| Metric                    | Description                                                                                      |
| ------------------------- | ------------------------------------------------------------------------------------------------ |
| **Supply APY**            | Current annual yield earned on the collateral asset                                              |
| **Borrow APY**            | Current annual rate paid on the borrowed asset                                                   |
| **Liquidation Threshold** | The debt-to-collateral ratio at which partial liquidation begins                                 |
| **Final APY**             | The effective return on your net value at the selected leverage                                  |
| **LTV**                   | The loan-to-value ratio at the selected leverage                                                 |
| **Days to Liquidation**   | Estimated time before the position reaches the Liquidation Threshold under the selected scenario |

## Important limitations

<Note>
  Market price fluctuations will not cause liquidations on pegged vaults. However, stablecoin depeg risk is not factored into this calculator. Time to liquidation may vary if a stablecoin loses its peg.
</Note>

The Calculator simulates rate scenarios based on current conditions. Actual borrow rates are variable and may change unpredictably. The projections are estimates, not guarantees. Always monitor your position through the Jupiter Lend dashboard.