When you liquidate an insolvent position, you earn all the liquidation fee at no cost other than performing the liquidation transaction.
The core team uses the liquidation app to monitor risky positions and liquidate insolvent ones in the event liquidation bots, including Silo's, don't liquidate first for any reason.
- Look for insolvent positions (positions with less than 1 Health). Borrow positions with H<1 are considered insolvent and can be liquidated.
The liquidation app prevents you from performing unprofitable liquidations by default, . An unprofitable liquidation is as an event where the market value of the seized collateral is less than the value of the loan, excluding any costs such as transaction fees, DEX price impact and slippage, etc.
- Have enough ETH to pay for transaction fees.