> For the complete documentation index, see [llms.txt](https://ionian.gitbook.io/mendi-finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ionian.gitbook.io/mendi-finance/protocol/liquidation.md). # Liquidation ## Live Liquidation Dashboard All liquidations are tracked live by the Intotheblock RIsk Dashboard. It is available on the following links, and users can check the liquidation history to see if they have been liquidated. There is no notification in the UI about liquidation, but sudden balance changes usually indicate potential liquidations. {% embed url="" %} {% embed url="" %} Users interested can find an example transaction for a liquidation on this Lineascan link:\ ## Liquidation Details Liquidation is determined by borrow collateral factors (used to determine initial borrowing capacity). When an account’s borrow balance exceeds the limits set by collateral factors, it is eligible for liquidation. A liquidator (a bot, contract, or user) can call the absorb function, which relinquishes ownership of the accounts collateral, and returns the value of the collateral, minus a penalty (liquidation factor), to the user in the base asset. The liquidated user has no remaining debt, and typically, will have an excess (interest earning) balance of the base asset. Each absorption is paid for by the protocol’s reserves of the base asset. In return, the protocol receives the collateral assets. If the remaining reserves are less than the target, liquidators are able to buy the collateral at a discount using the base asset, which increases the protocol’s base asset reserves. Our liquidation process is permissionless, and everyone is eligible to set up a liquidator to decrease the amount of bad debt in the protocol. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://ionian.gitbook.io/mendi-finance/protocol/liquidation.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.