Liquidation price

What does "Liquidation price" in the UI tell you?

The liquidation price of an asset, whether it is a borrow or deposit asset, is the simulated price at which your borrow position becomes insolvent (HF goes to 0%) and therefore is signaled for liquidation.

Let's take an example: See image

The position is simple:

• Deposit ETH

• Borrow USDC

If ETH goes down to roughly $588, I will be liquidated. On the other hand, if USDC goes up to $3.22, I will be liquidated. Needless to say USDC will likely not go up to $3 since it is a stablecoin, however, we report the liquidation price of all assets regardless of their expected market behavior.

What if you have two deposit positions?

If you have deposited two assets, the liquidation price for each asset is weighted to reflect its impact on your overall position.

Let's take an example: See image

The position is:

• Deposit ETH

• Deposit USDC

• Borrow rDPX

Both my deposits, ETH and USDC, are important to maintain the loan over-collateralization requirement. We display liquidation price for the 3 assets. You can infer the following from reading the "Liquidation price":

• If rDPX increases to $25.01, I will be liquidated - my loan has grown larger in value.

• If ETH goes down to $1,157.89, and assuming my USDC position remains at the same value, I will be liquidated.

• IF USDC de-pegs to $0.63, and assuming my ETH position remains at the same value, I will be liquidated.

What if you have two borrow positions?

If you have borrowed two assets, the liquidation price for each asset is weighted to reflect its impact on the position.

Let's take an example: See image

The position is:

• Deposit ETH

• Borrow rDPX

• Borrow USDC

We display liquidation price for the 3 assets. You can infer from the "Liquidation price" the following:

• If rDPX increases to $36.84, I will be liquidated - my loan has grown larger in value.

• IF USDC increases to $7.55, and assuming my rDPX borrow position remains at the same value, I will be liquidated.

• If ETH goes down to $912, I will be liquidated.

What if I have two deposit positions, or two borrow positions, and one of them is too small to cause liquidation?

If one position is insignificant, meaning it is too small to cause any liquidation, we display "--" (no value).

See the image below, my ETH deposit is too small to cause liquidation when ETH goes down in value.