Liquidation

What happens if an SP exceeds the Debt-to-Liquidation (DTL) limits?

If an SP's DTL exceeds 75%, all borrowing and withdrawing functionality will be temporarily disabled until the SP gets back into a healthy financial position. The SP is not at immediate risk of liquidation. The GLIF protocol can make payments on behalf of the SP to lower the SP’s debt and help it get back into good standing.

If an SP exceeds the DTL liquidation threshold (85%), it is then at risk of being liquidated. Immediate corrective actions and proactive communication with the GLIF team are essential to avoid liquidation and minimize further losses.

Read here for more details.

What tools are available to help SPs manage their borrowing limits?

GLIF provides a Borrowing Limit Calculator on their website to help SP calculate potential borrowing amounts based on their current financial ratios. (coming soon)