Skip to content

Commit

Permalink
TinaCMS content update
Browse files Browse the repository at this point in the history
  • Loading branch information
tina-cloud-app[bot] authored Dec 29, 2023
1 parent f7a31ac commit ffc9f55
Showing 1 changed file with 3 additions and 1 deletion.
4 changes: 3 additions & 1 deletion docs/Liquidations.mdx
Original file line number Diff line number Diff line change
Expand Up @@ -9,4 +9,6 @@ description: ''

If the value of the collateral in a vault falls below the minimum collateral ratio liquidation can occur. This process protects the protocol from insolvency risks.

During liquidations, a vault's collateral is lost as it is used to pay off the account's debt. The vault owner will no longer be able to retrieve the collateral by repaying debt. A liquidation thus results in a net loss of 18% to 20% of the collateral’s USD value.
During liquidations, a vault's collateral is lost as it is used to pay off the account's debt. The vault owner will no longer be able to retrieve the collateral by repaying debt. A liquidation thus results in a net loss of 18% to 20% of the collateral’s USD value.\
\
There is a max liquidation limit set by the protocol of 100,000 OD, for liquidations of vaults with larger values there will be multiple rounds of liquidation.

0 comments on commit ffc9f55

Please sign in to comment.