# Liquidated Positions

Liquidation happens if your health factor drops below 1. This can occur when the value of your collateral decreases or if the amount you’ve borrowed becomes too large relative to it. On the UI, you can see your health; if it drops below 1, you will be liquidated.

#### How would I get liquidated?

1. You are borrowing BERA while keeping BERA as collateral.
2. All your BERA will be converted into the vault position.
3. Your vault position may suffer impermanent loss. For example, in wBERA-wBTC, if BERA pumps, you are selling your BERA to buyers. Now, when paying the debt, you may have less BERA.
4. If your debt + collateral < 110% of your collateral, you will get liquidated.

#### How do I prevent getting liquidated?

1. If your health is 1, you would be liquidated. This means your collateral + borrow amount is now less than 110% of your collateral.
2. You can multiply your health by 110% to see your collateral factor. Eg., 1.05 is a collateral factor of 115.5%
3. We recommend adding more to the deposit if you are under 1.05 to make sure you don't get liquidated.

#### **Steps When Liquidated:**

* Your collateral will be partially or fully sold to cover the debt.
* Any leftover assets will be returned to your wallet.

To avoid liquidation, regularly monitor your health factor and adjust your collateral or repay debts as necessary.


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