Liquidations
Last updated
Last updated
Liquidations will occur when a position's LTV Ratio equals or exceeds the Liquidation Threshold.
A user borrows 25pETH against a Cryptopunk. The floor is 50 ETH, the max LTV is 60% and Liquidation Threshold is at 70%. His current LTV is of 50% and far from liquidation.
If the floor dropped to 35 ETH and they didn't repay any of their debt, their position's LTV would reach 71%, which is higher than the Liquidation Threshold, and be liquidated.
When users are liquidated, the DAO repays the users' pETH/PUSd debts by burning pETH/PUSd in the DAO. User can elect to insure their position to avoid immediate liquidation.
For uninsured positions with an active LTV Boost and/or Traits Boost, the locked $JPGD Tokens for the boost(s) will be burned instantly if liquidated.
For positions with an active LTV Boost and/or Traits Boost, the locked $JPGD Tokens for the boost(s) will be burned if the position is not repaid within the grace period of 48h. Learn more about .
When liquidated, NFTs will go up for auction, and more details are available in the section of the documentation.
