Liquidation Process

Liquidation Threshold

When a contract’s heath ratio is equal or goes below 1.2 or a contract expires, we will execute the "Liquidation Event".

EnsoFi will sell 100% collateral into borrowed token to repay lender

To Borrower

EnsoFi will transfer the leftover funds to the borrower’s wallet as the formula below:

Leftover Fund = Total Fund after liquidation - BorrowAmount - BorrowInterest - BorrowFee

To Lender

EnsoFi will calculate the total receive funds for the lender. After that, we will pay the lender as the formula below:

Total Receive = LendAmount + LendInterest + WaitingInterest - LenderFee