How much
- Repay: up to 50% of the chosen debt. The full debt can be repaid when HF ≤ 1 + the token’s bonus, or when the debt is worth $100 or less.
- Seize: tokens worth at most the repaid value × (1 + the token’s liquidation bonus). The bonus is at most 5%.
- Solvency guard: while the margin is still solvent, the multiplier is capped at the health factor. A liquidation never takes more than the margin’s equity, so it never turns a solvent account into bad debt.
min_seized as a slippage bound.
Phoenix positions
A Phoenix position can’t change hands. The liquidator closes it inside the samepublic_liquidate: reduce-only market orders priced within a band of the index price, then a withdrawal of the trader’s collateral back to the margin. The band is tighter for higher-leverage markets.
Prices
Debts need fresh prices. Collateral counts at its reported value, so stale dust can’t block a liquidation. The two prices actually settled must be fresh and within confidence, but they don’t need to sit inside the TWAP band, so a crash never blocks liquidation.Write-off
When a margin is left with $1 or less of collateral and still owes more, the admin can write off its debts. The pool’s accrued protocol fees absorb the loss first, then lenders.Known limits
- Eligibility uses the spot price, so a short wick can trigger a liquidation. The close factor and the bonus cap bound the cost.
- A debt whose price nobody can refresh would block liquidation, so only assets with crankable prices (Scope, Pyth) are borrowable.
- A stock perp’s index goes stale while its market is closed. Those markets carry lower leverage caps.