To ensure that borrowers can repay their debts, the protocol enforces that borrowers overcollateralize their debts with assets of greater value. The getNetCollateral function continuously risk adjusts the value of user balances. If the getNetCollateral function ever returns a negative value, the account is considered unhealthy and becomes eligible for liquidation.
Fixed rate markets enforce three liquidation methods:
Collateral liquidations
Fixed Rate Token liquidations (Post maturity)
LP Token liquidations (Post maturity)
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