Liquidator

Liquidation happens when a liquidation call is triggered by a liquidator.

Anyone can be a liquidator, but during Normal Mode, liquidation can only happen when a vault’s collateral ratio falls below the MCR.

As liquidators will incur gas fees for triggering the liquidation, they will receive, as a form of compensation and economic alignment:

  1. 20 cUSD (set aside in the vault as liquidation reserve)

  2. 0.5% of the vault’s liquidated collateral

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