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:

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

CollateralCredit:

BorrowCredit:

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