Liquidations
TsunamiX currently operates at a minimum collateralization ratio of 110%. If a trader's collateral's value drops below 110% of their debt on a position a, they are eligible for liquidation.
Ex 1: Liquidation Occurs
A trader has collateral worth $110 and debt worth $101.
110/101 = ~108.9%, which is less than 110% and therefore subject to liquidation
Ex 2: Liquidation Does Not Occur
A trader has collateral worth $111 and debt worth $100.
11/100 = ~111%, which is more than 110% and therefore NOT subject to liquidation
All positions are public and viewable meaning that anyone in the keeper network can audit which positions need to be liquidated at any point in time.
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