Liquidation is an automatic process that repays your loan using your collateral.
When does liquidation happen?
If your LTV reaches 80%, liquidation may be triggered.
What happens during liquidation?
- Part of your collateral is sold
- The proceeds repay your loan
- Any remaining collateral is returned to your account
Can I lose my collateral?
Yes.
If market conditions move significantly, some or all of your collateral may be used to repay your loan.