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SRWA.ioDemo Application
  • Intro
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  • Products
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      • Core Principles
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      • User Badge
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        • Deposit & Withdraw
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        • Market
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      • Lending Protocol
        • Protocol Operation
        • APY Calculation
          • Interest per Epoch
          • Account Position Calculations
        • Liquidations
          • Liquidation Function
          • Regular Liquidation
          • Insolvency Liquidation
          • Micro Liquidation
      • Vaults
        • Pool Params
      • Radix API / Gateway
      • Oracle
      • Risk management
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      • Protocol Incentives
      • Security Audits
      • Release Candidate Config
        • Pool XRD
        • Pool xUSDC
    • SRWA Vaulting
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    • 🏗️Ploughshare
  • General Information
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  1. Products
  2. SRWA Lending
  3. Lending Protocol
  4. Liquidations

Insolvency Liquidation

The account is considered insolvent when the total deposit value across all pools is insufficient to cover the value of all borrowed assets. That way, there's no interest to repay the loan and rewards.

max_liquidation_percent is set to 1, and all rewards go to the blueprint owner.

Once the deposits are gone, there is left to close the debt position of a given account. This is achieved by calling the same liquidation function, and as a result, the borrow balance would be decreased and there will be no returns for the caller.

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Last updated 1 year ago

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