⚖️User-Driven Liquidation Mechanics
Liquidation in Sonarix is permissionless: any network participant can trigger it when the conditions are met. This ensures fairness and decentralization in maintaining protocol health.
📌 Key Parameters
Health Factor (HF)
A safety ratio that measures how well a loan is collateralized. If HF ≤ 1.0, liquidation is triggered.
Close Factor
The maximum portion of a borrower’s debt that can be liquidated in a single transaction (e.g., 50%).
Liquidation Bonus
A discount applied to collateral seized by liquidators (e.g., 5–10%), serving as their reward.
Liquidation Fee
A penalty applied to the borrower during liquidation to discourage risky borrowing.
Asset-Specific Rules
Each collateral asset may have its own risk parameters, thresholds, and bonus rates.
Oracle Pricing
Real-time price feeds used to value collateral and debt, with safeguards against manipulation.
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