Relationships

An account becomes eligible for liquidation when the following formula is satisfied. (Formula to determine if an account's borrow amount is at or above the liquidation threshold)

a: Base asset borrow amount
b: Collateral value
c: Liquidation threshold factor

a - bc ≧ 0

Liquidation executes normally when the following formula is satisfied. (Formula to determine if collateral assets remaining for the borrower are $0 or more)

a: Collateral value
b: Base asset borrow amount
c: Liquidation penalty rate

a - b(1 + c) ≧ 0