Liquidations

Troves are liquidated if their LTV exceeds the maximum limit:

• ETH: 90.91%

• swETH: 85%

• rswETH: 75%

• swBTC: 75%

• SWELL: 50%

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 20% depending on asset risk and volatility; borrowers can reclaim any remaining collateral post-liquidation.