HF = (Σ Collateral_i × LiquidationThreshold_i) / TotalDebt

function getRiskLevel(healthFactor: number): RiskLevel {
  if (healthFactor > 2.0) return 'safe';
  if (healthFactor >= 1.5) return 'moderate';
  if (healthFactor >= 1.2) return 'high';
  if (healthFactor >= 1.0) return 'critical';
  return 'liquidation';
}

type RiskLevel = 'safe' | 'moderate' | 'high' | 'critical' | 'liquidation';

const riskLevelMessages: Record<RiskLevel, string> = {
  safe: 'Your position is well-collateralized.',
  moderate: 'Your position is healthy, but continue monitoring.',
  high: 'Your position is at risk. Consider adding collateral or repaying debt.',
  critical: 'Warning: Your position is near liquidation! Add collateral or repay immediately.',
  liquidation: 'Your position is eligible for liquidation.'
};

interface RiskAssessment {
  // Core metrics
  healthFactor: string;           // Current health factor (e.g., "1.85")
  maxLTV: string;                 // Maximum LTV allowed (e.g., "0.80")
  currentLTV: string;             // Current LTV ratio (e.g., "0.45")
  liquidationThreshold: string;   // Liquidation threshold (e.g., "0.825")
  liquidationPenalty: string;     // Liquidation penalty (e.g., "0.05")

  // eMode status
  eModeStatus: boolean;           // Whether eMode is enabled
  eModeCategory?: number;         // eMode category ID if enabled

  // Risk classification
  riskLevel: 'safe' | 'moderate' | 'high' | 'critical' | 'liquidation';

  // Additional metrics
  totalCollateralUSD: string;     // Total collateral value in USD
  totalDebtUSD: string;           // Total debt value in USD
  availableBorrowsUSD: string;    // Available borrowing power in USD
}

import { createPublicClient, http, parseAbi } from 'viem';
import { mainnet, arbitrum } from 'viem/chains';

const POOL_ADDRESSES = {
  1: '0x87870Bca3F3fD6335C3F4ce8392D69350B4fA4E2',    // Ethereum
  42161: '0x794a61358D6845594F94dc1DB02A252b5b4814aD'  // Arbitrum
};

const poolAbi = parseAbi([
  'function getUserAccountData(address user) view returns (uint256 totalCollateralBase, uint256 totalDebtBase, uint256 availableBorrowsBase, uint256 currentLiquidationThreshold, uint256 ltv, uint256 healthFactor)'
]);

## AAVE Position Risk Assessment

### Risk Summary

| Metric | Value | Status |
|--------|-------|--------|
| Health Factor | {healthFactor} | {riskEmoji} {riskLevel} |
| Total Collateral | ${totalCollateralUSD} | - |
| Total Debt | ${totalDebtUSD} | - |
| Available to Borrow | ${availableBorrowsUSD} | - |