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Liquidation protection

Borrowers are protected against excessive liquidations. The amount that can be liquidated through the batchLiquidationfunction cannot exceed the minimum amount necessary to bring the borrower's margin ratio back to the initial margin ratio (in the case of margin deficit) and the minimum amount necessary to cover a borrower repurchase price (in the case of failure to repay) after adjusting for liquidated damages. This is in contrast to arbitrary close factors found in other lending protocols and should protect against excessive liquidations.

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Last updated 1 year ago