From ffc9f55dafe2768e9a7c1da203c8fe1930910067 Mon Sep 17 00:00:00 2001 From: "tina-cloud-app[bot]" <58178390+tina-cloud-app[bot]@users.noreply.github.com> Date: Fri, 29 Dec 2023 16:18:06 +0000 Subject: [PATCH] TinaCMS content update --- docs/Liquidations.mdx | 4 +++- 1 file changed, 3 insertions(+), 1 deletion(-) diff --git a/docs/Liquidations.mdx b/docs/Liquidations.mdx index 82c69e39..3c33b205 100644 --- a/docs/Liquidations.mdx +++ b/docs/Liquidations.mdx @@ -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.