Liquidation process

If the rebalancing process fails, your xPOSITION could eventually reach the Liquidation line. If that happens, the rest of the position is entirely closed. It uses the same mechanism as described in the Rebalancing section, with two differences:

• The entirety of the debt is burned

• The liquidation process is handled on an individual position basis and does not use the band mechanism of the rebalancing process

• The liquidation bounty isn't necessarily the same as for rebalancings

Learn more about the rebalancing process here:

🪂Rebalancing the Position (Liquidation Brake)

Learn more about the thresholds and bounty applied to the liquidation process here:

🚨Risk parameters