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Loop:
  1. Enumerate margin accounts. Index MarginCreated events, or scan program accounts on a cluster that supports it.
  2. Value each account the way the oracle does: every allowed token in its vaults (up to each cap), its Phoenix trader equity, and every debt at accrued value. lib/account-model.ts and lib/solana/oracle.ts mirror the program.
  3. Pick candidates with HF ≤ 1.10.
  4. Choose a pair: one debt to repay and one allowed token to seize. Prefer the largest debt and the most liquid collateral.
  5. Unwind venues if needed. If the account has open Phoenix positions, pass reduce-only closes (and a collateral withdrawal) as calls in the same public_liquidate.
  6. Liquidate with public_liquidate(calls, repay, min_seized) and a conservative min_seized.

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Economics

You receive up to the repaid value × (1 + the token’s liquidation bonus, at most 5%). Near HF 1 the multiplier shrinks to the health factor, so a solvent margin is never pushed into bad debt. Repay is capped at 50% of the debt unless HF ≤ 1 + bonus or the debt is worth $100 or less. Seized receipt tokens (Kamino cTokens, Perena shares, basis-vault shares) are yours to redeem from the issuing protocol.

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Sanity checks

  • Debts need fresh prices. Collateral is counted at its reported value, so stale dust can’t block you.
  • The two settled prices must be fresh and within confidence.
  • A healthy account must fail with PositionHealthy. If your bot thinks it can liquidate HF 2.0, the account set is wrong.
  • Liquidation events are emitted through self-CPI. Read them from inner instructions.