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Its all automated, so it depends on the contract, I assume if the USD value of ETH drops too much, the borrower gets margin called.
by newacc9 5y ago
Its all automated, so it depends on the contract, I assume if the USD value of ETH drops too much, the borrower gets margin called.
- the_optimist 5y agoCan you reference a specific margin call mechanism?
- newacc9 5y agoI found this for Compound. The liquidation mechanism is in section 11. https://zengo.com/understanding-compounds-liquidation/ https://zengo.com/understanding-compounds-liquidation/