Rule Enforcement

It's important that SPs follow two rules:

  1. SPs must keep their principal (borrowed amount) above their liquidation value.

  2. SPs have to make their weekly payments on time each week, and not miss 3 consecutive weekly payments in a row.

  3. SPs must recover faulty sectors within 3 consecutive days.

If either of these rules are broken, the SP is subject to a liquidation, where the SP's Miner Actors' sectors are terminated, and funds are repaid to the pool. See more information about Agent states in the 3 Agent States section.

Manual rule enforcement

Sometimes bugs happen - either in GLIF or Filecoin itself. Occasionally these bugs might cause an SP to miss a payment, or have extended period of times with faulty sectors. For this reason, the protocol does not yet automate liquidations - it's a manual process controlled by the GLIF team. It's too dangerous to automate these rules because destructive actions can occur, which would cause losses for SP's that they should not be responsible for.

It's important that you can reach us if you're running into problems - if you are missing payments or incurring fault penalties, you must contact the GLIF team as soon as possible to work on recovering from the situation. See our contact info below:




Twitter: @glifio

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