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Early Warning Tools for Compound v3 Positions

Proactive monitoring and timely alerts are crucial to avoid forced liquidations. Here are key tools and methods:

1. Protocol Built-In Alerts​

  • Compound Interface: Some deployments offer email or on-screen notifications when your borrow usage or health factor crosses thresholds.
  • Setup: Check your account settings in the Compound app to enable any available alerts.

2. Portfolio Trackers​

  • Examples: DeBank, Zapper, Zerion
  • Features:
    • Real-time dashboard of collateral, debt, and health factor
    • Customizable alerts when your metrics exceed safe limits

3. Automation Platforms​

  • Tools: DeFi Saver, InstaDapp
  • Capabilities:
    • Automated self-liquidation (repay or add collateral based on triggers)
    • Push or email notifications on events

4. Custom Scripts & On-Chain Monitors​

  • Forta: Deploy or use existing agents to watch your address for under-collateralization and send alerts.
  • Web3 Scripts: Write simple polling scripts (ethers.js/web3.js) to check your position and notify via Telegram, SMS, or email.

5. Price Alerts​

  • Crypto Apps: CoinGecko, CoinMarketCap, TradingView
  • Use Case: Set alerts for your collateral asset’s price levels that correspond to your LTV safety thresholds.

Next Steps​

Test your alert setup in a safe environment, practice a self-liquidation drill, and then challenge yourself with the Quiz: Liquidation Risk Management.