TermLiquidation
HOW it happens, distinct from what triggers it. repay-seize | soft-band (LlamaLend: gradual, reversible, penalty-free conversion inside the AMM — there is no single liquidation price) | stability-pool | auction (Frankencoin: no oracle, an owner-DECLARED price policed by a Dutch auction) | default-seizure | delivery | repay-to-target-hf (Aave V4: no close factor at all — the liquidator repays whatever restores targetHealthFactor, and penalty is the MAXIMUM bonus, reached at healthFactorForMaxBonus) | none.
soft-band only — being "in liquidation" is not terminal and unwinds if price recovers.
price | time | price-and-time | redemption | none. A time trigger liquidates a perfectly over-collateralised position; a health factor does NOT protect you.
FRACTION (0.8 = 80 %).
FRACTION.
FRACTION of repaid debt paid to the liquidator on top of par. ABSENT means UNKNOWN — never read it as 0.
penalties object[]nullable
Named penalties where one number cannot express the model — Liquity charges differently depending on whether the Stability Pool absorbs the debt or it is redistributed.
Native-token value to send with the transaction, in wei.
Human-readable label for this entry.
Max FRACTION of the debt repayable in a single liquidation. Aave/Compound V2 0.5; 1 (full liquidation) for isolated and credit-account protocols. 1 is also the fallback when the market data carries no close factor, so read it together with fullCloseBelowHealthFactor.
proportional | full-collateral. The latter (Teller) means a liquidator takes the ENTIRE escrow, not the amount owed — roughly 2x the borrowed value at 50 % LTV.
redemption object
Collateral taken from a HEALTHY position. On every lender we serve this is a PERMISSIONLESS ARBITRAGE that defends the stablecoin’s peg — not a liquidation, and not a governance decision. Rendering only the effect ("your collateral can be taken") misleads.
permissionless-arbitrage — any holder of the debt token, any time. (governance / protocol are reserved and unused.)
below-peg — it only pays them while the token trades under its target.
lowest-rate-first (Liquity family — your rate IS your queue position) | pro-rata (Resupply — every borrower is skimmed, nothing to out-run) | lowest-collateral-ratio.
usd-neutral — the fee stays in the position as extra collateral, so the borrower loses EXPOSURE, not value. Do not render this as "you lose your collateral".
What the borrower can do. ABSENT when order: pro-rata — there is nothing.
bandLtv objectnullable
soft-band only: collateral factor as a function of the band count chosen at open (0.991 at N=4 vs 0.886 at N=50). ltv reports the default N.
repay-to-target-hf only: the health factor at or below which the liquidator bonus reaches penalty. Between there and HF 1 the bonus is smaller.
{
"model": "string",
"absorber": "string",
"reversible": true,
"trigger": "string",
"ltv": 0,
"liquidationLtv": 0,
"penalty": 0,
"penalties": [
{
"id": "string",
"label": "string",
"value": 0,
"description": "string"
}
],
"closeFactor": 0,
"targetHealthFactor": 0,
"seizure": "string",
"redeemable": true,
"redemption": {
"trigger": "string",
"driver": "string",
"order": "string",
"valueImpact": "string",
"defence": "string"
},
"windowSecs": 0,
"gracePeriodSecs": 0,
"permissioned": true,
"badDebt": "string",
"bandLtv": {},
"defaultBands": 0,
"fullCloseBelowHealthFactor": 0,
"healthFactorForMaxBonus": 0
}