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