Liquidations

Macaron's Health Factor and Liquidation process are fundamental in safeguarding user accounts and upholding financial stability across the platform. Here's an in-depth overview of these vital elements:

Liquidation Process

• Liquidation begins when an account's health factor drops to1.

• During liquidation, all account activities—including depositing, withdrawing collateral, borrowing, claiming, and depositing into strategies—are suspended.

• The liquidator initiates the liquidation process, during which strategy withdrawals are executed, and all debts owed to the liquidity pool, along with accrued interest, are settled.

• Macaron will verify that the health factor is indeed 1 or lower before proceeding with liquidation and will ensure that all debts and interest are fully paid off afterward. Any discrepancies will result in the transaction being reverted.

• Once the liquidation process is complete, the liquidator is free to claim the remaining assets in the Credit Account as a reward. The Credit Account is then officially closed.