# 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\


Learn more about the rebalancing process here:

{% content-ref url="" %}
[]()
{% endcontent-ref %}

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

{% content-ref url="../../risk-management/risk-parameters" %}
[risk-parameters](../../risk-management/risk-parameters)
{% endcontent-ref %}

