Liquidation
Last updated
Last updated
If your Health Factor reaches 1.25, your position will be liquidated. The Delea will gather from your collateral and pass it to liquidators, who will provide an equivalent amount of $DONE back to Delea.
The protocol will accordingly burn $DONE to keep the price and collaterization stable.
You can still use the $DONE you minted, but your original collateral will not be returned. Here is the scheme how Liquidation works:
