The liquidation process undermines a flow, where your collateral is sold to repay the loan borrowed. Liquidation occurs in the event, when the current Loan-to-Value (LTV) ratio reaches the set threshold (indicated as a liquidation price). This, in return, can be the result of a drop in the value of the collateral or an increase in the value of the borrowed assets due to accrued interest over time.
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article