How to calculate liquidation for vaults when collateral prices fall?
Many projects use collateral to back their stable assets. What happens when the collateral value falls below the minimum threshold? Well, your position gets liquidated. It's similar to #margincall.
How is this calculated? Here, we show you a step by step process.
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Disclaimer
This is not financial advice. Information shared is found publicly on the internet. All analysis and opinions are my own. The purpose of sharing the information is for education and knowledge sharing. The information shared is accurate at the time of recording. Purchasing cryptocurrencies poses a considerable risk of loss. Past performance does not indicate future results.
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