Liquidation
Last updated
Last updated
It shows the personal state of liquidation risk, when Obligation Health >100%, your excess borrow will be liquidated by automated liquidation bots.
The Collateral Factor shows that the borrow percentage of collaterals.
For now, the collateral factor is 75% for BTC, ETH, SOL, USDT.
This means the borrowed value is 75% (depend on the collateral factor of specific token)of the deposit value.
Low collateral factor means high capital security.
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.
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.
Liquidation reward for the liquidator will be 8% of liquidating amount.