Liquidation Engine

Clear Bad Debt

Maintain protocol health by liquidating undercollateralised positions. Earn an 8% premium bonus on the collateral you receive.

Liq. Threshold

< 1.0 HF

Liquidation Bonus

8%

Close Factor

50%

Risk Zone

1.0–1.2 HF

Vulnerable Positions

Demo Data

Target Position

0xabc...1234

Health Factor

Liquidatable0.940
▼
▼
Max 50%

Target Position

0xdef...5678

Health Factor

At Risk1.040
🛡️

This position is currently healthy and protected from liquidation.

The Liquidation Process

1

HF Drops Below 1.0

Market volatility causes collateral value to drop, or accumulated interest pushes debt too high.

2

Repay Target Debt

Liquidators invoke the contract to repay up to 50% (Close Factor) of the user's outstanding debt.

3

Claim 8% Bonus

Contract transfers the equivalent collateral value plus an 8% premium directly to your wallet.

4

Position Stabilizes

The targeted user's Health Factor recovers. If still below 1.0, further liquidations can occur.