GLIF Docs
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V2 English
  • Introduction
    • Quick Guide
    • GLIF Overview
    • Protocol Users
  • For Liquidity Providers
    • Benefits for token holders
    • GLIF Reward Mechanism - iFIL
    • Exit - Withdraw FIL
    • Asset Security
    • Risks
  • For Storage Providers
    • Benefits for Storage Providers
    • SP Liquidation Values
    • Borrowing Limits & DTL
    • Uses of Borrowed FIL
    • Liquidations
    • Borrowing Cost
    • Manage Miner Actors with Agents
    • Guarantor Model
  • Developer Resources
    • GLIF SDK
    • GLIF CLI
    • Deployed Contracts
  • TROUBLESHOOTING
    • FAQ
      • FAQ for Liquidity Providers
        • About GLIF
        • Deposit FIL
        • Withdraw FIL
        • Risk
        • Wallet Connection
        • GLIF Points
        • Miscellaneous
      • FAQ for Storage Providers
        • Borrow and Withdraw FIL
        • Key Financial Ratio
        • Payment
        • Liquidation
        • Agents
        • Transaction Issue
    • TUTORIALS
      • For Token Holders
        • Wallets
          • How to find your corresponding 0x/f410 wallet address
          • How to obtain a Ledger wallet as the intermediary wallet
          • How to obtain a burner wallet as the intermediary wallet
          • How to obtain a FilSnap wallet as the intermediary wallet
          • How to connect your wallet to Filecoin Mainnet
          • How to transfer FIL from a 0x address to an f1 address
          • How to create a multisig wallet on GLIF
        • Using the Pool
          • Deposit FIL into GLIF to earn rewards
          • How to deposit Filecoin from a hardware wallet with GLIF
          • How to deposit FIL to GLIF using multisig wallet
          • Withdraw FIL from GLIF
          • How to withdraw FIL from GLIF using a multisig wallet
        • Transfer FIL to/from exchanges
          • Transfer FIL between exchange and GLIF
          • Binance
            • Transfer FIL from Binance to GLIF
            • Transfer FIL from GLIF to Binance
          • MEXC
            • Transfer FIL from MEXC to GLIF
            • Transfer FIL from GLIF to MEXC
      • For Storage Providers
        • GLIF Agent Website Tutorial Part I— Preparation Setup
        • GLIF Agent Website Tutorial Part II — Create your Agent
        • GLIF Agent Website Tutorial Part III — Add Your Miner
        • How to withdraw FIL from the agent to an exchange at GLIF
      • How to Claim $GLF Airdrop
    • Glossary
    • Contact Us
  • Governance
    • Governance
    • Delegation
    • Proposals (GIPs)
    • Voting Process
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On this page
  • What happens if a Storage Provider fails to meet their obligations?
  • What are the borrowing eligibility criteria for Storage Providers?
  • How does collateralization work in GLIF?
  • Is my FIL safe in the event of market fluctuations?
  1. TROUBLESHOOTING
  2. FAQ
  3. FAQ for Liquidity Providers

Risk

PreviousWithdraw FILNextWallet Connection

Last updated 10 months ago

What happens if a Storage Provider fails to meet their obligations?

If a Storage Provider (SP) starts getting slashed on the Filecoin network and begins to decrease in its , GLIF may have to liquidate the SP to recoup the FIL. The GLIF protocol ensures that an SP cannot borrow more FIL than 75% of their liquidation value. You can read more about the rules .

What are the borrowing eligibility criteria for Storage Providers?

To be eligible for borrowing, SP must have sufficient FIL to provide as collateral on one or more Filecoin Miner Actors. You can get an estimate, or read more about the rules .

How does collateralization work in GLIF?

GLIF constantly monitors the of every SP in the network. If the SP’s borrowed FIL reaches 75% of their liquidation value, the Storage Providers get cut off from borrowing more FIL. At 85%, the Storage Provider is at risk of liquidation. You can read more about the rules .

Is my FIL safe in the event of market fluctuations?

Yes - market fluctuations do not impact your FIL on GLIF.

Market fluctuations generally refer to price volatility within capital markets - for instance, if the price of FIL suddenly jumps in USD terms. GLIF earns FIL-on-FIL rewards for LPs, so the price of FIL relative to other crypto assets is irrelevant in the context of GLIF.

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