# Liquidation

If a users position drops below the minimum collateralization threshold, then this position can be liquidated. The liquidator will pay the outstanding debt in ***zUSD***. In exchange, the liquidator will receive the collateral plus the liquidation fee, up to 10.00%.

The remaining balance of collateral will remain available to the minter to mint additional zUSD against or withdraw their collateral.

To avoid liquidations users need to keep their position above 150.00%. If the collateral value decreases, or the debt value increases, the liquidation ratio will decrease. The user will need to either add additional collateral, or repay debt to increase the collateralization ratio.

This feature will be bot driven and can only be triggered from the contract. Future iterations will allow for an asynchronous liquidation auction that will allow for much more capital efficient liquidations.


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