XDiscordMedium

Liquidations

Troves (Positions) are liquidated if their LTV exceeds the maximum limit:

  • ETH: 90.91%

  • swETH: 86,96%%

  • rswETH: 83,33%

  • Swell: 76,92%

  • weETH: 83,33%

Orki employs Stability Pools as the primary liquidation mechanism, absorbing liquidated debt and collateral.

Fallback options include:

  1. Just-in-Time Liquidation (JIT): Liquidators exchange USDK for collateral at a 105% nominal value.

  2. Redistribution: Excess debt and collateral are proportionally distributed among other borrowers in the same collateral market.

Liquidation incurs a minimum 5% penalty of up to 10% depending on asset risk and volatility; borrowers can reclaim any remaining collateral post-liquidation.

PreviousRedemptionsNextCollateral

Last updated