Hello, if my collateral drops in price and falls below the amount I’ve borrowed what happens? Does the lender take my collateral? Thanks for the info!
Hi, yes you get liquidated : the amount to repay your borrow + liquidation fees are taken from your collateral
Thanks hhk. That liquidation happens when the loan to value hits 95%?
If your borrow exceeds 75% of your collateral you will be at a high risk of liquidation.
from the kashi documentation :
A user may be liquidated if their collateralization drops below 133%. Two liquidation options are available. In a range from 129 - 133% of collateralization, only a closed liquidation is available. In this case, a pre-approved swapper may be called by the SushiSwap team or liquidity providers to swap collateral to asset. The liquidation proceeds are distributed amongst liquidity providers and xSushi holders.
If this range passes without a position being liquidated, it goes into open liquidation. At this point, anyone may liquidate a position by providing the borrowed amount directly or using a swapper of their choosing.
In the UI this will show as 100% (Using max will only go up to 95% to give you a small buffer)
Thanks. Where do you get the kashi documentation?