Liquidations
Monitor positions and perform liquidations
Lookup Position
Check any position's health and liquidation status
System Health
Overall vault collateralization status
How Liquidation Works
1. Position Health
Each LP position must maintain at least 125% collateralization ratio (MCR). If it falls below 110% (liquidation threshold), the position can be liquidated.
2. Liquidation Process
Anyone can call liquidate() on an underwater position. The liquidator pays the position's debt in EMAD and receives the collateral (USDC).
3. Liquidation Bonus
Liquidators receive a 5% bonus on top of the collateral as incentive. This comes from the position's remaining collateral.
4. Circuit Breaker
If the oracle price deviates more than 5% from the last accepted price, minting is automatically paused to protect the system.