When it happens
Your health factor measures your collateral against your debt. If it falls below 1.0, the venue liquidates part of your collateral to bring the position back in line.Your fixed rate survives it
A venue liquidation reduces your loan. It does not cancel it. Afterwards you still hold a fixed-rate loan at the rate you were quoted, on a smaller debt with less collateral behind it. Nothing about the rate you agreed to changes.This is the difference between the two liquidations in IRIS. A venue liquidation shrinks your loan and keeps your fixed rate. A solver liquidation keeps your loan size and ends your fixed rate.
How much you lose
Both the size of the liquidated portion and the penalty charged on it are set by the venue, not by IRIS, and they differ between venues. Your position sits in one venue at a time, and a solver can move it between the venues you allowed, so the rules that apply to you are whichever venue currently holds the position.Staying out of it
- Watch the health factor on the positions page.
- Add collateral when it drifts toward 1.0. See Managing positions.
- Remember the venue can change. If your solver migrates the position, the liquidation rules that apply to you are the new venue’s.