When the user's health factor is less than 1, the system will liquidate the user's collateral and liquidate 50% of the debt until the health factor is> 1. If the liquidation threshold is triggered again, repeat the above operation.
The specific liquidation process is as follows:
- When the user's health factor is less than 1, enter the liquidation queue.
- Liquidate 1/2 of the loan position of the debt warehouse user, and the liquidator is free to choose the currency supported by the system for rush auction.
- When the user's health factor> 1, the liquidation will be stopped immediately.
- In extreme cases such as unilateral up-and-down market conditions, the system will be the final liquidator and the risk reserve will be used to repay.
*The specific rules for the use of risk reserves need to be jointly decided by the community.