Explainer

How a liquidation works

Six steps, one example. Step through it and watch the same position from the borrower's side, the market's side and the liquidator's side at once.

cbXRP PRICE $2.50 2.60 1.70 LIQUIDATION AT 1.92 BORROWER MORPHO MARKET LIQUIDATOR COLLATERAL 10,000 cbXRP worth $25,000 DEBT 12,000 USDC HEALTH 1.302 1.0 LIMIT 62.5% OWED TO LENDERS 12,000 USDC HEALTHY BONUS IN THIS MARKET 12.68% PAYS0 USDC RECEIVES0 cbXRPworth $0 BONUS$0
Step 1 of 6

Try it with your own numbers

The example uses the same figures as the calculator's starting values, so the two agree to the cent. The auction in the last step is what report 001 measures.

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