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  • 🧐How it works
    • Design Architecture
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      • Preparing Wallet
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      • Stake FIT to Earn FIG
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      • Understand Filecoin (FIL) Wallet Address
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  • Storage Provider GUIDE
    • Borrowing Interest Rate
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      • Binding and Unbinding For Borrowers
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  • ⁉️Understanding Filecoin Ecosystem
    • What is Filecoin
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    • Background
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  1. Storage Provider GUIDE

Liquidation Mechanism

PreviousPrecautions NotesNextFamily Miners

Last updated 2 months ago

  • The liquidation mechanism refers to the debt liquidation line that will be triggered when the sum of the total borrowing, lending principal, and interest relative to the sum of the balances of each miner in the Family reaches a certain threshold (currently set at85%).

  • Anyone can trigger the liquidation, and the system will use 90% of the liquidation amount to repay the debt, reward 3% to the user who triggers the liquidation, and invest 7% in the risk reserve pool.