Risk Management and Liquidation

Our platform is built with robust liquidation mechanisms to ensure lenders are fully protected. If the value of collateral drops below the required threshold, an automatic liquidation process will be triggered to safeguard borrowed funds.

Collateral will be promptly sold to recover the borrowed amount. Additionally, we have a contingency plan in place: collateral can be leveraged within other trusted protocols to secure further funds, allowing us to extend recovery time and maximize asset recovery.

We also encourage market participation through liquidation auctions, ensuring a competitive, healthy marketplace that supports liquidity and stability for all users.