> For the complete documentation index, see [llms.txt](https://docs.jpegd.io/jpegd-dao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.jpegd.io/jpegd-dao/peer-2-peer-lending/for-lenders/liquidation.md).

# Liquidation

Default only happens when the borrower fails to repay their debt by the end of the Loan Duration.

In case of default, lenders can claim the collateral by withdawing it on the Single NFt Page.