# Liquidation process

If the rebalancing process fails, your position 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 (xPOSITION) or repaid (sPOSITION)
* The liquidation bounty isn't necessarily the same as for rebalancings<br>

Learn more about the rebalancing process here:

{% content-ref url="/pages/pt4bciofk8iLypojK2zK" %}
[Rebalancing the Position (Liquidation Brake)](/fx-docs/f-x-protocol-mechanisms/rebalancing-the-position-liquidation-brake.md)
{% endcontent-ref %}

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

{% content-ref url="/pages/XU8FjHZWoEUZRLXHNMtn" %}
[Risk parameters](/fx-docs/risk-management/risk-parameters.md)
{% endcontent-ref %}


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