Liquidation Tutorial

Liquidation Rules

When the value of the asset loaned by the user> the value of the loanable asset (loan utilization rate> 100%), it will trigger liquidation. At this time, any user can run the contract as the liquidation executor to liquidate borrowers whose loan utilization rate is greater than 100%.

The liquidator will help the liquidated user to repay, and at the same time obtain the mortgaged assets of the liquidated user, and receive a 5% reward. The liquidator can select any asset from the account to be liquidated for liquidation..

Users need to pay attention to the following cases that lead to liquidation:

1. Rise in the price of loaned assets: When the price of loaned asset rises and the total value of the loaned assets rises, it may cause the loan utilization rate > 100%;

2. The price of mortgage assets drops: When the price of mortgage assets drops, the value of borrowable assets will become smaller, which may result in the loan utilization rate> 100%;

3. Long-term non-repayment: Borrowing has a certain interest rate. When the loaned assets and the interest to be repaid increases, it may also cause the loan utilization rate > 100%. Therefore, even if it is a single token collateralization and leading, liquidation will also happen as the interest increases.

How to liquidate

Switch to the "Liquidation" page

When a liquidation event occurs, you can view it in the list on this page.

Select the asset to be liquidated. Anyone can perform the liquidation as a liquidator.

Before liquidation, please ensure that there are enough assets in the wallet to help liquidated users repay.