> For the complete documentation index, see [llms.txt](https://acmd-tothesky.gitbook.io/archimedes/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://acmd-tothesky.gitbook.io/archimedes/tutorial-1/qing-suan-gui-ze.md).

# Liquidation

#### Collateral: The liquidity token (LP token) of the position is used as collateral 

#### Debt: Tokens borrowed when opening a position (A, B) 

#### Debt ratio:

![](/files/-MeSsxqDASSaKhWfTHVd)

In order to ensure the security of the agreement, the platform sets a debt price factor (PriceFactorBorrow) for each token that is used as a debt, and a collateral price factor (PriceFactorCollateral) for each LP token, where the debt price factor is a slightly greater than 1. A collateral price factor is a number slightly smaller than 1. 

Liquidation: When the debt ratio of a position is greater than 100%, anyone can liquidate it. Repayment on behalf of the position, and get collateral rewards greater than the value of this part of the repayment

#### Liquidation rewards：

Liquidation rewards=Repayment equivalent collateral \* liquidation reward factor

$$
Liquidation rewards=Repayment equivalent collateral \* liquidation reward factor
$$

#### CollateralCredit：

![](/files/-MeUDM0vuFUhpNjMSmoA)

#### BorrowCredit：

![](/files/-MeStBHECgf4TTqMcxVE)

##


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