After maturity, a user might hold a long-dated LP position or limit order against a matured Fixed Rate Token position. As the interest rate on the matured debt increases, the account's net collateral might fall below zero.
This liquidation method allows the conversion of the unhealthy account's LP position or limit order to its underlying claim. This liquidation method effectively removes liquidity from the order book on behalf of the liquidated account. The liquidator receives part of the positive net collateral benefit associated with the removal of the Loan Tokens from the tick. If the LP position claim is in Fixed Rate Tokens, the liquidator will need to call the Fixed Rate Token liquidation method described above in order to profit from the transaction.
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