Liquidation happens when your LTV (Loan-to-Value) reaches the liquidation threshold — the maximum risk level for your Credit Line.
When this point is reached, your collateral is automatically sold to repay the loan principal and the accrued interest. This process ensures that the Credit Line remains fully covered.
You can prevent liquidation by monitoring your LTV and keeping it within a safe range — for example, by adding more collateral or partially repaying the Credit Line before the threshold is reached.
From our side, we closely monitor your LTV and send notifications in advance if your position approaches the liquidation level. This gives you time to react — you can add more collateral or partially repay the Credit Line to lower your LTV and avoid liquidation.