Liquidations
When a loan is liquidated, how each collateral is handled, and the penalty.
LTV 78%Liquidating
Past the liquidation line
Max 60%Liq. 75%
Liquidating means the loan’s LTV has reached its liquidation LTV, so its collateral can be used to repay the debt. On Positions the card gets a red border. Liquidation is how the protocol keeps every PUSD backed.
Can I still save it?
Yes, until the collateral is sold. Repay or add collateral to bring the LTV back under the max, and the loan returns to Healthy. Do it as soon as you can: a sale can’t be undone. While the loan is Liquidating you can’t borrow more or withdraw.
What happens, by collateral
| Collateral | At liquidation | Penalty |
|---|---|---|
| LST | Sold at market to repay the debt. You keep whatever is left. | 10% |
| Tokenized stock | Sold at market while the US market is open; paused while it’s closed. You keep whatever is left. | 10% |
| Stake account | Not force-sold. The loan is settled through the stake itself. | – |