Liquidation
Liquidation occurs when a borrower’s health factor falls below a safe threshold. This could happen if the value of your collateral decreases or if your borrowed assets fall in price relative to your collateral.
If you’re liquidated, your collateral will be sold to cover the borrowed amount, and you could lose a portion of your assets. Beracana uses automated systems to ensure that liquidations are handled efficiently, minimizing losses while keeping the system solvent.
Key Liquidation Points:
Liquidation happens when your health factor is too low.
Automated systems ensure fair liquidation processes.
Maintain a healthy collateral ratio to avoid liquidation.
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