Application

Protection Agent

Protection Agent monitors your DeFi positions and alerts you via Telegram before liquidation - modeling the probability of liquidation from collateral volatility, not just the health factor.

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Protection Agent is a liquidation risk monitoring tool at /protection-agent. It watches DeFi lending positions across supported protocols and sends Telegram alerts when a position approaches liquidation - before it's too late to act.

The tool goes beyond the health factor: it models the probability of liquidation from collateral volatility, giving you a more actionable risk signal than a raw ratio alone.

Supported protocols

Protocol Status
Aave V3 Active
Compound V3 Coming soon
Morpho Coming soon
SmartCredit Coming soon

Check any wallet - no connection needed

The wallet lookup on the main page lets you check the liquidation risk of any public wallet address without connecting your own wallet. Enter an address, select a protocol, and click Check risk.

The result shows:

  • Health factor - the ratio of collateral value to borrowed value. Below 1.0, the position is liquidatable.
  • Liquidation probability - modeled from collateral volatility; a position with a health factor of 1.4 backed by volatile assets may be riskier than one at 1.3 backed by stable collateral.
  • Collateral and debt - current values in USD.
  • Shareable report - a live risk link you can send to anyone.

From the result, you can click Monitor to add the wallet to your active subscriptions.

Setting up monitoring

To receive alerts, complete the four-step setup:

  1. Connect Wallet - sign in with your wallet to access the monitoring dashboard.
  2. Connect Telegram - link the SmartCredit Telegram bot. Alerts are delivered here; the connection is required before alerts can fire.
  3. Add position - click + Add Position (or Monitor from a lookup result). In the dialog:
  4. Select a protocol (Aave V3)
  5. Enter the wallet address to monitor - you can monitor any wallet, not only your own
  6. Enable the Telegram notification channel
  7. Get alerts - the agent monitors the position continuously. When risk exceeds the alert threshold, you receive a Telegram message.

You can add up to 9 subscriptions per page (pagination is available for larger sets).

Health factor risk tiers

Each subscription card shows the current health factor with a risk tier:

Health factor Tier Meaning
< 1.0 Liquidatable Position is already eligible for liquidation
1.0 – 1.2 Critical Liquidation imminent; act immediately
1.2 – 1.35 Danger High liquidation risk; consider adding collateral or repaying
1.35 – 1.5 Warning Elevated risk; monitor closely
1.5 – 2.0 Watch Moderate risk; safe under normal conditions
≥ 2.0 Safe Low liquidation risk

Managing subscriptions

Each subscription card shows the wallet address, protocol, last alert time, and current health factor. From the card you can:

  • Pause - temporarily stop monitoring without deleting the subscription. Resume at any time.
  • Edit - update the notification channel settings.
  • Remove - permanently delete the subscription.

Why probability matters more than the health factor

The health factor is a snapshot. A position at 1.4 backed by a volatile token like a meme coin may liquidate faster during a market move than a position at 1.3 backed by ETH. Protection Agent models liquidation probability from collateral volatility, so the alert you receive reflects actual risk - not just the current ratio.

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Further info