> For the complete documentation index, see [llms.txt](https://rebalance.gitbook.io/rebalance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://rebalance.gitbook.io/rebalance/borrowing-optimization/liquidation-protection.md).

# Liquidation Protection

• Coming later •

Users have the option to choose an advanced liquidation scenario. 

1. When the health factor drops and liquidation approaches, the protocol adds 10% of the user's collateral to their balance to stabilize the position.
2. If the market stabilizes and the health factor recovers, the protocol retrieves its contribution. If not, liquidation proceeds with a higher penalty, meaning there's a 2% extra-fee added on the collateral.

In the basic liquidation scenario (e.g., if the threshold is between 79.9-80%), REBALANCE will liquidate your position slightly earlier (by 0.05-0.1%), still with a lower fee than any lending protocol.

<figure><img src="https://998222210-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FJRdwpSiri1TdTPaZ9HVJ%2Fuploads%2F3wZutO0E1aOJ5oK8zOIl%2Fimage.png?alt=media&amp;token=30655597-83e7-4d4a-8641-fa3a9845710a" alt=""><figcaption><p>Numbers on the image are approximate, used for illustration.</p></figcaption></figure>