Liquidation Process

Executing process

  • When a liquidation happens, a 5% liquidation will be deducted to reward the liquidator bot.

  • Then the position value will be calculated and pay back the debt to the lender (Vault).

  • The rest value in the position will be returned to the trader or farmer.

Return Value to trader/farmer = Position value - Liquidation fee - Debt value (include interest)

More details about the Secure Liquidation Mechanism

Secure Liquidation

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