diff --git a/contracts/protocol/libraries/logic/GenericLogic.sol b/contracts/protocol/libraries/logic/GenericLogic.sol
index d4081dda..5722dd2b 100644
--- a/contracts/protocol/libraries/logic/GenericLogic.sol
+++ b/contracts/protocol/libraries/logic/GenericLogic.sol
@@ -4,6 +4,7 @@ pragma experimental ABIEncoderV2;
 
 import {SafeMath} from '../../../dependencies/openzeppelin/contracts/SafeMath.sol';
 import {IERC20} from '../../../dependencies/openzeppelin/contracts/IERC20.sol';
+import {IScaledBalanceToken} from '../../../interfaces/IScaledBalanceToken.sol';
 import {ReserveLogic} from './ReserveLogic.sol';
 import {ReserveConfiguration} from '../configuration/ReserveConfiguration.sol';
 import {UserConfiguration} from '../configuration/UserConfiguration.sol';
@@ -116,10 +117,12 @@ library GenericLogic {
   }
 
   struct CalculateUserAccountDataVars {
-    uint256 reserveUnitPrice;
-    uint256 tokenUnit;
-    uint256 compoundedLiquidityBalance;
-    uint256 compoundedBorrowBalance;
+    uint256 assetPrice;
+    uint256 assetUnit;
+    uint256 userBalance;
+    uint256 userBalanceETH;
+    uint256 userDebt;
+    uint256 userDebtETH;
     uint256 decimals;
     uint256 ltv;
     uint256 liquidationThreshold;
@@ -130,6 +133,8 @@ library GenericLogic {
     uint256 avgLtv;
     uint256 avgLiquidationThreshold;
     uint256 reservesLength;
+    uint256 normalizedIncome;
+    uint256 normalizedDebt;
     bool healthFactorBelowThreshold;
     address currentReserveAddress;
     bool usageAsCollateralEnabled;
@@ -182,34 +187,41 @@ library GenericLogic {
         .configuration
         .getParams();
 
-      vars.tokenUnit = 10**vars.decimals;
-      vars.reserveUnitPrice = IPriceOracleGetter(oracle).getAssetPrice(vars.currentReserveAddress);
+      vars.assetUnit = 10**vars.decimals;
+      vars.assetPrice = IPriceOracleGetter(oracle).getAssetPrice(vars.currentReserveAddress);
 
       if (vars.liquidationThreshold != 0 && userConfig.isUsingAsCollateral(vars.i)) {
-        vars.compoundedLiquidityBalance = IERC20(currentReserve.aTokenAddress).balanceOf(user);
+        vars.userBalance = IScaledBalanceToken(currentReserve.aTokenAddress).scaledBalanceOf(user);
+        if (vars.userBalance > 0) {
+          vars.normalizedIncome = currentReserve.getNormalizedIncome();
+          vars.userBalance = vars.userBalance.rayMul(vars.normalizedIncome);
+        }
 
-        uint256 liquidityBalanceETH =
-          vars.reserveUnitPrice.mul(vars.compoundedLiquidityBalance).div(vars.tokenUnit);
+        vars.userBalanceETH = vars.assetPrice.mul(vars.userBalance).div(vars.assetUnit);
 
-        vars.totalCollateralInETH = vars.totalCollateralInETH.add(liquidityBalanceETH);
+        vars.totalCollateralInETH = vars.totalCollateralInETH.add(vars.userBalanceETH);
 
-        vars.avgLtv = vars.avgLtv.add(liquidityBalanceETH.mul(vars.ltv));
+        vars.avgLtv = vars.avgLtv.add(vars.userBalanceETH.mul(vars.ltv));
         vars.avgLiquidationThreshold = vars.avgLiquidationThreshold.add(
-          liquidityBalanceETH.mul(vars.liquidationThreshold)
+          vars.userBalanceETH.mul(vars.liquidationThreshold)
         );
       }
 
       if (userConfig.isBorrowing(vars.i)) {
-        vars.compoundedBorrowBalance = IERC20(currentReserve.stableDebtTokenAddress).balanceOf(
-          user
-        );
-        vars.compoundedBorrowBalance = vars.compoundedBorrowBalance.add(
-          IERC20(currentReserve.variableDebtTokenAddress).balanceOf(user)
-        );
+        vars.userDebt = IScaledBalanceToken(currentReserve.variableDebtTokenAddress)
+          .scaledBalanceOf(user);
 
-        vars.totalDebtInETH = vars.totalDebtInETH.add(
-          vars.reserveUnitPrice.mul(vars.compoundedBorrowBalance).div(vars.tokenUnit)
+        if (vars.userDebt > 0) {
+          vars.normalizedDebt = currentReserve.getNormalizedDebt();
+          vars.userDebt = vars.userDebt.rayMul(vars.normalizedDebt);
+        }
+
+        vars.userDebt = vars.userDebt.add(
+          IERC20(currentReserve.stableDebtTokenAddress).balanceOf(user)
         );
+        vars.userDebtETH = vars.assetPrice.mul(vars.userDebt).div(vars.assetUnit);
+        vars.totalDebtInETH = vars.totalDebtInETH.add(vars.userDebtETH);
+          
       }
     }
 
diff --git a/package-lock.json b/package-lock.json
index c5cc43eb..8310558b 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -10900,6 +10900,14 @@
           "requires": {
             "min-document": "^2.19.0",
             "process": "^0.11.10"
+          },
+          "dependencies": {
+            "process": {
+              "version": "0.5.2",
+              "resolved": "https://registry.npmjs.org/process/-/process-0.5.2.tgz",
+              "integrity": "sha1-FjjYqONML0QKkduVq5rrZ3/Bhc8=",
+              "dev": true
+            }
           }
         },
         "got": {
@@ -12576,12 +12584,6 @@
           "integrity": "sha512-VvivMrbvd2nKkiG38qjULzlc+4Vx4wm/whI9pQD35YrARNnhxeiRktSOhSukRLFNlzg6Br/cJPet5J/u19r/mg==",
           "dev": true
         },
-        "process": {
-          "version": "0.11.10",
-          "resolved": "https://registry.npmjs.org/process/-/process-0.11.10.tgz",
-          "integrity": "sha1-czIwDoQBYb2j5podHZGn1LwW8YI=",
-          "dev": true
-        },
         "process-nextick-args": {
           "version": "2.0.1",
           "resolved": "https://registry.npmjs.org/process-nextick-args/-/process-nextick-args-2.0.1.tgz",