Liquidations

Moar uses LTV as a loan health gauge, which is calculated as follows:

The current collateral is based on the current state of the account instead of deposits/withdrawals. Current collateral is always calculated as follows:

The loan can be liquidated when LTV is equal to or higher than X%. At this point, Moar-owned and third-party liquidation bots are incentivized to liquidate part of the loan, to reduce the LTV to a healthy level and acquire a liquidation bonus.