Liquidation
How liquidation works on PredMart — triggers, close factors, liquidation bonus and discount, underwater positions, auto-sell of seized collateral, and how to avoid it.
<p>Liquidation triggers when a position's health factor drops below 1.0. PredMart's liquidation engine responds within seconds via WebSocket price monitoring. Above-water positions face 50% close factor with 5% liquidator bonus. Below 0.95 health factor, 100% close factor applies. Underwater positions are liquidated at 10% discount, with bad debt socialized across lenders.</p>