How much do I lose in case of liquidation?
Last updated
Last updated
When the trader's position becomes undercollateralized, it can be further liquidated by the rules of the lending protocol applied. As we're currently interacting with AAVE and Compound protocols, the positions are being liquidated in accordance with the rules of these protocols.
In the event of liquidation, the remaining amount of margin could be then retrieved via the 'Claim' option:
To be precise, in the event of liquidation a lending protocol may use up to 50% of the trader's margin included in the position + liquidation fee, in order to repay the debt.