🏦Loan Liquidation

To prohibit borrowers from defaulting on their loans, Middle Lend incentivizes liquidators to observe and liquidate loans with a borrowing amount above the allowed Loan Risk.

Work Flow

The core of the liquidation logic of Middle system is very simple and can be roughly divided into the following steps.

• Discovering the liquidation order

• Calling the liquidation interface Initiate Liquidation

• Pay the corresponding Token

• Obtain collateral

Anyone can call the liquidation through the interface. Usually, the liquidator will get collateral of higher value than the substitute debt, so the liquidator needs to dispose of the collateral by itself after getting it.