> ## Documentation Index
> Fetch the complete documentation index at: https://docs.vanna.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Liquidation

> Permissionless, partial, bonus-paid close of accounts at HF ≤ 1.10, plus admin write-off of dust bad debt.

Anyone can liquidate a margin account once its health factor is at or below 1.10. One liquidation repays part of **one debt** and takes **one token**.

## 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.

The liquidator sets `min_seized` as a slippage bound.

## Phoenix positions

A Phoenix position can't change hands. The liquidator closes it inside the same `public_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.


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