✂️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.

Numbers on the image are approximate, used for illustration.