🌊 Liquidation
In the event that your debt ratio has gone above the threshold (Liquidation Threshold), your position will be liquidated.
The value you receive back after liquidation will depend on the Liquidation Threshold. Please refers to the table below for an estimate.
Pools | Liquidation Threshold | Liquidation Bounty | Estimated returned value to farmer (% of position value at liquidation) |
ALPACA-BUSD | 83.3% | 5% | 11.6% |
BUSD-ALAPCA | 70% | 5% | 25% |
ITAM - BNB | 70% | 5% | 25% |
bMXX-BNB | 70% | 5% | 25% |
BELT-BNB | 70% | 5% | 25% |
BRY-BNB | 70% | 5% | 25% |
pCWS-BNB | 70% | 5% | 25% |
SWINGBY-BNB | 70% | 5% | 25% |
CAKE | 80% | 5% | 15% |
DODO-BNB | 80% | 5% | 15% |
CAKE-BNB | 80% | 5% | 15% |
BTCB-BNB | 83.3% | 5% | 11.6% |
BTCB-BUSD | 83.3% | 5% | 11.6% |
CAKE-BUSD | 83.3% | 5% | 11.6% |
ETH-BNB | 83.3% | 5% | 11.6% |
BNB-BUSD | 83.3% | 5% | 11.6% |
BNB-USDT | 83.3% | 5% | 11.6% |
DOT-BNB | 83.3% | 5% | 11.6% |
UNI-BNB | 83.3% | 5% | 11.6% |
LINK-BNB | 83.3% | 5% | 11.6% |
XVS-BNB | 83.3% | 5% | 11.6% |
COMP-ETH | 83.3% | 5% | 11.6% |
SUSHI-ETH | 83.3% | 5% | 11.6% |
VAI-BUSD | 90% | 5% | 5% |
USDC-BUSD | 90% | 5% | 5% |
DAI-BUSD | 90% | 5% | 5% |
UST-BUSD | 90% | 5% | 5% |
USDT-BUSD | 92% | 5% | 3% |
Pools | Liquidation Threshold | Liquidation Bounty | Estimated returned value to farmer (% of position value at liquidation) |
ALPACA-USDT | 80% | 5% | 15% |
USDT-ALPACA | 70% | 5% | 25% |
ALPACA-BNB | 80% | 5% | 15% |
BNB-ALPACA | 70% | 5% | 25% |
WAULTx-BNB | 70% | 5% | 25% |
WEX-BNB | 80% | 5% | 15% |
WEX-USDT | 80% | 5% | 15% |
BTCB-BUSD | 83.33% | 5% | 11.6% |
ETH-BUSD | 83.33% | 5% | 11.6% |
BTCB-USDT | 83.33% | 5% | 11.6% |
ETH-USDT | 83.33% | 5% | 11.6% |
BTCB-ETH | 83.33% | 5% | 11.6% |
BNB-BUSD | 83.33% | 5% | 11.6% |
BETH-ETH | 90% | 5% | 5% |
USDT-BUSD | 90% | 5% | 5% |
Alice opened a 2x leveraged yield farming position on CAKE-BNB pool
She supplied 10 BNB
our Vault loaned her 10 BNB
We then optimally swapped BNB into CAKE and acquired LP tokens for her
At this time, Alice's position is ~20 BNB ( in reality, it will be slightly lower due to price impact from swapping and trading fees)
Her debt ratio is ~50%
Sometime later , BNB price has appreciated significantly causing Alice's position to be worth less in BNB term. This is because the LP pool will try to maintain equal value of the token pairs, causing Alice to have more CAKE and less BNB in her position.
Unfortunately, BNB price continued to appreciate such that the debt ratio has reached 80% (Liquidation Threshold), and the liquidation bot called the smart contract to close her position
At this time, her position value is roughly ~12.5 BNB
10 BNB will be used to repay the loan
0.625 BNB (5% of the position value at liquidation ~12.5 BNB) will be paid to the liquidator as a bounty
1.875 BNB will be returned to the user
To make this example easy to understand, please note that this example ignores the impact of yield farming rewards and trading fees which would increase Alice's position value and make her position safer. It also ignores the borrowing interest rate which would increase the debt value, moving her debt ratio higher.
