# Liquidation

#### **Obligation Health**&#x20;

* It shows the personal state of liquidation risk, when Obligation Health >100%, your excess borrow will be liquidated by automated liquidation bots.&#x20;

{% content-ref url="../strategies/position-health-formula" %}
[position-health-formula](https://docs.projectlarix.com/strategies/position-health-formula)
{% endcontent-ref %}

#### Collateral Factor

* The Collateral Factor shows that the borrow percentage of collaterals.&#x20;
* For now, the collateral factor is 75% for BTC, ETH, SOL, USDT.&#x20;
* This means the borrowed value is 75% (depend on the collateral factor of specific token)of the deposit value.&#x20;
* Low collateral factor means high capital security.&#x20;

#### How can I avoid getting liquidated?

To avoid liquidation you can raise your health factor by depositing more collateral assets or repaying part of your loan (< 75%). Meantime, keeping repayments increases your supply more than deposits.

#### Can I participate in the liquidations ecosystem?

Yes, liquidations are open to anyone, but there is a lot of competition. Normally liquidators develop their own solutions and bots to be the first ones liquidating loans to get the liquidation bonus.&#x20;

#### Liquidation reward for the liquidator

Liquidation reward for the liquidator will be 8% of liquidating amount.&#x20;
